What is the Risk Priority Number for risk item number 2?

To determine the Risk Priority Number (RPN) for a risk item, it's often calculated by multiplying three factors: the likelihood of the risk occurring, the potential impact of the risk if it does occur, and the ability to detect the risk before it causes harm. The formula generally looks like this:

RPN = Likelihood × Impact × Detection

An RPN provides a quantitative measure to help prioritize risks, allowing teams to allocate resources more effectively based on the severity and detectability of these risks.

Given that the answer is 63, it suggests that either the likelihood, impact, or detection was rated highly, leading to a relatively high product of the three factors. This could mean that risk item number 2 is considered very significant in terms of either its potential occurrence, the severity of its consequences, or the difficulty in detecting it prior to it affecting the project. High RPN values indicate risks that should be addressed urgently.

In summary, the RPN number reflects the level of scrutiny and action necessary to manage that risk effectively based on its compounded likelihood, impact, and detection score.