**Risk probability**is the chance of a risk occurring.

**Risk impact**is the cost of a risk if it does occur.

## Risk Probability vs Risk Impact

Risk probability and impact are two parameters that are commonly used to model risk. The following example illustrates the risks associated with giving a toddler a big cookie.Risks of Giving a Toddler a Big Cookie | ||

Risk | Probability | Impact |

Drops cookie on floor | 5% | Need to replace cookie and vacuum |

Gets crumbs on floor | 20% | Need to vacuum |

Risk Probability vs Risk Impact | ||

Risk Probability | Risk Impact | |

Definition | The chance that a risk will occur. | The cost when a risk does occur. |