Probability and Impact Matrix

A Probability and Impact Matrix is a tool used to evaluate potential risks by measuring how likely they are to occur (probability) and how much damage they could cause (impact). The matrix helps prioritize risks by plotting each one based on these two factors, often in a grid format. Risks with high probability and high impact are addressed urgently, while those with low probability and impact are monitored. This structured approach assists organizations in making informed decisions about where to focus their risk management efforts efficiently.