Probability and impact can be modeled with a probability-impact matrix -- a table of multiple values for risk probability and impact. Next read: Types of Risk Analysis
The estimated probability that a risk will occur.
The estimated costs of a risk if it should occur.
Using categories such as high, medium and low for risk impact instead of a number.
An estimate of the cost of a risk calculated as probability × impact.
The sum of all risk values that apply to a situation.
Risk Exposure Ratio
Risk exposure as a ratio of total assets, cost or resources involved in the risk.
The reduction in risk exposure that is achieved by risk treatment.
The risk exposure that remains after risk treatment.
The new risk exposures that are created by risk treatments.
Risk Management Effectiveness
The ratio of risk reduction to residual risk including secondary risk.
Actual real world costs of risks that have occurred.
Cost of Risk
The cost of risks that occur plus the costs of managing risk.