Probability and Impact Matrix

By utilizing a Probability and Impact Matrix, you can figure out which risks need the most focus and how to allocate and optimize risk response methods. Fundamentally, this Matrix demonstrates the results of probability estimations and effect assessments.

If you plan these steps out now during the Plan Risk Management process, it will be easier to evaluate the identified risks later during Perform Qualitative Risk Analysis process.

It is used as a part of

Estimating the probability of a risk is a way to determine the chance of it occurring. To gauge the likelihood, data from comparable past initiatives can be considered, or those with related knowledge and understanding can be consulted. An impact evaluation can then be conducted to figure out how serious the consequence of the risk might be.

To measure the potential severity of a risk, an impact assessment is performed. Through this assessment, the impact of this risk on the project is evaluated, ranging from minor hindrance to severe setback. Professionals knowledgeable and experienced in the topic are typically consulted for such an assessment, which can be done through meetings or interviews.

See also: Uncertainty performance domain

Risk Management