Which two dimensions are typically rated in a risk assessment matrix?

Which two dimensions are typically rated in a risk assessment matrix?

• A. Likelihood and Impact
• B. Cost and Schedule
• C. Frequency and Severity
• D. Probability and Exposure

Answer: (A)

In a risk assessment matrix, two factors are used to evaluate risk: likelihood and impact. Likelihood asks how probable it is that a risk event will occur, while impact measures the severity of the consequences if it does happen (such as financial loss, safety harm, or reputational damage). Together, they let you place risks on a grid (low, medium, high) so you can prioritize which risks to address first. The idea is that a risk that is likely to occur and would cause substantial damage deserves more attention than a rare, minor one. Other pairs don’t quite capture the same focus. Cost and schedule describe project constraints rather than the probability and harm of a risk. Frequency and severity are essentially the same concepts as likelihood and impact in different wording, but the standard matrix typically uses likelihood and impact. Probability and exposure mixes a probability with exposure, which is a different measurement than the standard impact category used to gauge how bad the outcome would be.

In a risk assessment matrix, two factors are used to evaluate risk: likelihood and impact. Likelihood asks how probable it is that a risk event will occur, while impact measures the severity of the consequences if it does happen (such as financial loss, safety harm, or reputational damage). Together, they let you place risks on a grid (low, medium, high) so you can prioritize which risks to address first. The idea is that a risk that is likely to occur and would cause substantial damage deserves more attention than a rare, minor one.

Other pairs don’t quite capture the same focus. Cost and schedule describe project constraints rather than the probability and harm of a risk. Frequency and severity are essentially the same concepts as likelihood and impact in different wording, but the standard matrix typically uses likelihood and impact. Probability and exposure mixes a probability with exposure, which is a different measurement than the standard impact category used to gauge how bad the outcome would be.