Risk Probability vs Risk ImpactRisk 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
Drops cookie on floor
Need to replace cookie and vacuum
Gets crumbs on floor
Need to vacuum
|Risk Probability vs Risk Impact
The chance that a risk will occur.
The cost when a risk does occur.