PMI Risk Management Professional Practice Exam 2026 - Free Risk Management Practice Questions and Study Guide

A probability-impact matrix is a tool used in risk management to evaluate and prioritize risks by analyzing their likelihood of occurrence and the potential impact they could have on the project. This matrix provides a systematic approach to understanding which risks need immediate attention and resources, allowing project managers to focus on high-priority items that could significantly affect project objectives.

By plotting risks on a grid where one axis represents the probability of occurrence (often ranked as low, medium, or high) and the other represents the potential impact (also ranked similarly), stakeholders can quickly visualize which risks are more threatening to the project's success. This prioritization helps in making informed decisions regarding risk responses and management strategies. In contrast, the other options involve different project management activities that are not related to the function of a probability-impact matrix.