A Probability and Impact Matrix contains risks prioritized according to their potential implications for meeting the project’s objectives. The typical approach is:
A. To use a look-up table or Probability and Impact Matrix with specific combinations of Probability and impact that lead to a risk being rated as “high”, “moderate” or “low” importance. The importance for planning responses to the risk are usually set by the organization.
B. To create a Risk Breakdown Structure with the probabilities and Impacts listed on the individual boxes. The higher the risk, the closer it is towards the Start Node.
C. To use a look-up table or Probability and Impact Matrix with specific combinations of Probability and impact that lead to a risk being rated as “high”, “moderate” or “low” importance. The importance for planning responses to the risk are usually set by the project manager.
D. To create a matrix with the Cost, Time, Scope and Quality on one axis and probability of occurrence on the other.