Business Impact-Probability Matrix

The Business Impact-Probability Matrix is a tool used to assess the risk of a given project or action. It helps to identify the most important risks and prioritize them accordingly.

At a very high level, the Business Impact-Probability Matrix is used in the context of business, risk management.

Business Impact-Probability Matrix quadrant descriptions, including examples
Want to try this template?
Other Templates

What is the Business Impact-Probability Matrix?

A visual explanation is shown in the image above. The Business Impact-Probability Matrix can be described as a matrix with the following quadrants:

  1. High Impact, High Probability: This quadrant represents risks that have a high impact and a high probability of occurring. Examples include a major supplier going out of business or a key customer cancelling their contract.
  2. High Impact, Low Probability: This quadrant represents risks that have a high impact but a low probability of occurring. Examples include a natural disaster or a cyber attack.
  3. Low Impact, High Probability: This quadrant represents risks that have a low impact but a high probability of occurring. Examples include a minor supplier going out of business or a customer returning a product.
  4. Low Impact, Low Probability: This quadrant represents risks that have a low impact and a low probability of occurring. Examples include a minor supplier delay or a customer complaint.

What is the purpose of the Business Impact-Probability Matrix?

The Business Impact-Probability Matrix is a tool used to assess the risk of a given project or action. It helps to identify the most important risks and prioritize them accordingly. The matrix is made up of four quadrants, each representing a different level of risk. The top-left quadrant represents the highest risk, with the bottom-right quadrant representing the lowest risk.

The matrix is used to assess the potential impact and probability of a given risk. The impact is measured on a scale from 1 to 10, with 10 being the highest impact. The probability is measured on a scale from 0 to 1, with 1 being the highest probability. The risks are then plotted on the matrix, with the highest risk in the top-left quadrant and the lowest risk in the bottom-right quadrant.

The matrix can be used to prioritize risks and determine which ones need to be addressed first. It can also be used to identify areas of potential improvement and to develop strategies to reduce the risk of a project or action.


Want to try this template?

What templates are related to Business Impact-Probability Matrix?

The following templates can also be categorized as business, risk management and are therefore related to Business Impact-Probability Matrix: Effort Impact Matrix, Gap Analysis Matrix, Growth Share Matrix, Kraljic Matrix, Outsourcing Matrix, Quadrant Analysis, Risk Analysis Matrix, Risk Value Matrix. You can browse them using the menu above.

How can I use Business Impact-Probability Matrix in Priority Matrix?

You can get Business Impact-Probability Matrix in your Priority Matrix in just a moment:

  1. Click to sign in or create an account in the system
  2. Start adding your items to the matrix
  3. If you prefer it, download Priority Matrix and take your data with you

Learn more about Business Impact-Probability Matrix, and get free access to lots of other templates, at templates.app. Once you are comfortable with the document, you can easily export to Excel, if you prefer to work that way.

If you have any questions and you can't find the answer in our knowledge base, don't hesitate to contact us for help.