This PPT slide, part of the 84-slide Risk Management in a Project Portfolio Management (PPM) Context PowerPoint presentation, presents a Probability-Impact Matrix, a tool used for assessing risks associated with various initiatives. The matrix is structured into a grid format, categorizing risks based on their likelihood of occurrence and the potential impact they could have. The vertical axis indicates the severity of impact, ranging from 'Severe' at the top to 'Low' at the bottom. The horizontal axis reflects the probability of occurrence, though specific labels for this axis are not visible.

Within the matrix, 5 distinct segments are marked with Roman numerals I through V. Each segment represents a combination of probability and impact, allowing for a visual representation of risk levels. For instance, the top left segment (labeled III) corresponds to risks that are likely to have a severe impact, while the bottom right segment (labeled V) indicates risks with low impact and likely occurrence.

The slide also notes that this tool is sometimes referred to as a 'Risk heat matrix.' It provides an initial assessment of risk distribution across various segments, which can help stakeholders prioritize their focus on high-risk areas. This visual tool is essential for decision-making, as it aids in identifying where to allocate resources and attention to mitigate potential issues effectively.

Understanding this matrix can enhance strategic planning and risk management efforts, making it a valuable asset for organizations aiming to navigate uncertainties in their initiatives.

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Risk Management Project Management Strategic Planning Portfolio Management