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  • The Risk Probability and Impact Matrix

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    Errol Thompson
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    The document discusses how to create a risk probability and impact matrix for risk management. It explains that the matrix defines probability and impact scales, such as ordinal or cardinal, and combines them to rate risk levels. Probability is the likelihood of an event occurring, while impact is the potential effect on project objectives. The matrix is included in the risk management plan to assess individual risks.

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    The document discusses how to create a risk probability and impact matrix for risk management. It explains that the matrix defines probability and impact scales, such as ordinal or cardinal, and combines them to rate risk levels. Probability is the likelihood of an event occurring, while impact is the potential effect on project objectives. The matrix is included in the risk management plan to assess individual risks.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Download as pdf or txt
    20 views12 pages

    The Risk Probability and Impact Matrix

    Uploaded by

    Errol Thompson
    The document discusses how to create a risk probability and impact matrix for risk management. It explains that the matrix defines probability and impact scales, such as ordinal or cardinal, and combines them to rate risk levels. Probability is the likelihood of an event occurring, while impact is the potential effect on project objectives. The matrix is included in the risk management plan to assess individual risks.

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    of 12

    RISK MANAGEMENT CERTIFICATION PROGRAM

    PLANNING RISK MANAGEMENT


    THE RISK PROBABILITY AND IMPACT MATRIX

    PLANNING RISK MANAGEMENT


    ‣ DISTINGUISH BETWEEN
    THE THREE RISK RATINGS
    IN AN ORDINAL SCALE

    THE RISK PROBABILITY


    AND IMPACT MATRIX
    ‣ HOW PROBABILITY AND IMPACT
    WILL BE DEFINED
    ‣ DEVELOP DEFINITIONS
    ‣ CREATE A PROBABILITY AND
    IMPACT MATRIX
    ‣ DIFFERENCE BETWEEN RISK
    PROBABILITY AND RISK IMPACT

    THE RISK PROBABILITY


    AND IMPACT MATRIX
    ‣ RISK PROBABILITY IS THE
    LIKELIHOOD THAT AN
    EVENT WILL OCCUR
    ‣ SOMETIMES EXPRESSED
    AS A NUMBER FROM 0 TO 1

    THE RISK PROBABILITY


    AND IMPACT MATRIX
    ‣ RISK IMPACT IS THE
    AMOUNT OF DANGER, OR
    OPPORTUNITY
    ‣ THE EFFECT THE RISK
    EVENT WILL HAVE ON THE
    PROJECTS OBJECTIVE

    THE RISK PROBABILITY


    AND IMPACT MATRIX
    ‣ A CARDINAL SCALE, OR AN
    ORDINAL SCALE
    ‣ A CARDINAL SCALE
    MEASURES PROBABILITY
    AND IMPACT FROM 0 TO 1
    ‣ AN ORDINAL SCALE
    RANGES FROM LOW TO HIGH

    THE RISK PROBABILITY


    AND IMPACT MATRIX
    ‣ CARDINAL AND ORDINAL
    EQUIVALENCE
    ‣ COMBINED TO EXPRESS
    RISK PROBABILITY

    THE RISK PROBABILITY


    AND IMPACT MATRIX
    ‣ RATE THE IMPACT OF ANY
    GIVEN RISK
    ‣ UNDERSTAND WHAT
    CRITERIA WILL BE USED
    ‣ PROJECT MANAGER AND
    TEAM WILL DETERMINE
    TOGETHER

    THE RISK PROBABILITY


    AND IMPACT MATRIX
    ‣ DEFINITIONS OF IMPACTS
    FOR YOUR PROJECT
    ‣ LOOK UP A COMBINED
    RISK RATING FOR ANY
    GIVEN RISK

    THE RISK PROBABILITY


    AND IMPACT MATRIX
    ‣ EACH PROBABILITY AND
    IMPACT COMBINATION HAS A
    RISK RATING
    ‣ PROBABILITY AND IMPACT
    MATRIX AND YOUR IMPACT
    DEFINITION TABLE
    ‣ INCLUDED IN THE RISK
    MANAGEMENT PLAN

    THE RISK PROBABILITY


    AND IMPACT MATRIX
    RISK MANAGEMENT CERTIFICATION PROGRAM

    PLANNING RISK MANAGEMENT

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