A project's risk register lists two risks that will be rated on a 5×5 probability-impact matrix, where an overall risk score is calculated by multiplying the numeric probability rating by the numeric impact rating.
Risk A
Probability rating: 2 (Low)
Impact rating: 5 (Catastrophic)
Risk B
Probability rating: 4 (High)
Impact rating: 1 (Minor)
Based on the calculated risk scores, which risk should the project manager prioritize for proactive response?
Risk A
Risk B
Both risks have the same priority
Additional information is required before prioritizing
To obtain each overall risk score, multiply the probability rating by the impact rating.
Risk A: 2 × 5 = 10
Risk B: 4 × 1 = 4 Because Risk A's score (10) is higher than Risk B's score (4), Risk A is the more critical risk and should be addressed first. This demonstrates that a low-probability but high-impact threat can outrank a high-probability but low-impact threat when using a probability-impact matrix.
Ask Bash
Bash is our AI bot, trained to help you pass your exam. AI Generated Content may display inaccurate information, always double-check anything important.
What is a probability-impact matrix?
Open an interactive chat with Bash
Why is Risk A prioritized despite its low probability?
Open an interactive chat with Bash
Can the risk matrix change throughout the project?