What is a probability impact matrix?

Probability Impact Matrix — is a risk management tool that helps assess and prioritize project risks.

It is a table or matrix where one axis represents the likelihood of a risk occurring (for example, from low to high), and the other axis indicates the degree of impact on the project (from negligible to critical).

Each risk is assigned a position in this matrix, allowing for a visual identification of which risks require immediate attention and resources, and which can be monitored or ignored.

Example:

Probability \ Impact	Low	Medium	High
High	Medium priority	High priority	Critical priority
Medium	Low priority	Medium priority	High priority
Low	Ignore	Low priority	Medium priority

Thus, the matrix helps systematize risks and make informed decisions about their management.