How are risk, size, and value calculated in a demand

Brigid33770
Tera Contributor
 
1 ACCEPTED SOLUTION

Aniket Chavan
Tera Sage
Tera Sage

Hello @Brigid33770 ,

 

I’m taking reference from the below detailed article which explains the calculations for Risk, Value, and Size in Demand Management. I’d highly recommend checking it out for complete context:

🔗 How risk, value and size are calculated in a Demand

Still, to give you a quick summary:

 

✔️ Size (score_size)
Mapped directly from the T-shirt size:

  • S → 2

  • M → 4

  • L → 6

  • XL → 8

  • XXL → 10

 

✔️ Value (score_value)
Based on Impact (60%) and Financial Return (40%)
Example:
If Impact = Medium (5) and Return < $50K (1)
Value Score = (5 × 0.6) + (1 × 0.4) = 3.4

 

✔️ Risk (score_risk)
Assessed through metrics like:

  • Time Delay (20%)

  • Business Case (15%)

  • Business Expansion (20%)

  • Commitment (20%)

These are configured in the Assessment Metrics for each Demand.

 

All of these contribute to the overall Demand Score, and the metric weights/scales can be customized if needed.

Hope this helps.

Please Mark Correct if this solves your query and also mark 👍Helpful if you find my response worthy based on the impact.


Regards,
Aniket

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3 REPLIES 3

Aniket Chavan
Tera Sage
Tera Sage

Hello @Brigid33770 ,

 

I’m taking reference from the below detailed article which explains the calculations for Risk, Value, and Size in Demand Management. I’d highly recommend checking it out for complete context:

🔗 How risk, value and size are calculated in a Demand

Still, to give you a quick summary:

 

✔️ Size (score_size)
Mapped directly from the T-shirt size:

  • S → 2

  • M → 4

  • L → 6

  • XL → 8

  • XXL → 10

 

✔️ Value (score_value)
Based on Impact (60%) and Financial Return (40%)
Example:
If Impact = Medium (5) and Return < $50K (1)
Value Score = (5 × 0.6) + (1 × 0.4) = 3.4

 

✔️ Risk (score_risk)
Assessed through metrics like:

  • Time Delay (20%)

  • Business Case (15%)

  • Business Expansion (20%)

  • Commitment (20%)

These are configured in the Assessment Metrics for each Demand.

 

All of these contribute to the overall Demand Score, and the metric weights/scales can be customized if needed.

Hope this helps.

Please Mark Correct if this solves your query and also mark 👍Helpful if you find my response worthy based on the impact.


Regards,
Aniket

Thank you, that's what I need to know!

Welcome & glad to hear that it worked and resolved your query.😉