Probability Impact Grid

Question 1

Probability Impact Grid

Answer 1

Purpose: Helps decide which risks are most important.

How it works:
Risks rated by Probability (Chance) and Impact (Severity)

High probability + high impact = High priority

Low probability + low impact = Low priority.

~ Benefit: Focus resources on most critical risks

Question 2

How Probability Impact Grid is used within project management

Answer 2

Identify Risks → Spot possible problems

Qualitative Assessment → Check how bad/likely they are

Prioritize Risks → Decide which are most important

Plan Responses → Figure out how to handle them

Communicate → Keep stakeholders informed

Monitor & Update → Track and adjust as needed

👉 “I Quickly Pick Plans Carefully, Monitoring”
I = Identify

Q = Qualitative assessment

P = Prioritize

P = Plan responses

C = Communicate

M = Monitor & update

Question 3

purpose of risk tolerance line

Answer 3

Shows the limit of risk a project or organization is willing to accept

Keeps risks within safe boundaries.

Question 4

What is IMPACT in Probability Impact Grid

Answer 4

Shows how bad or good a risk could be

Rated as Low / Medium / High

Question 5

What is LIKELIHOOD in Probability Impact Grid?

Answer 5

Probability of risk occurring .

Measured in low, medium or high