The probability-impact matrix is a qualitative risk assessment technique that positions each project risk on a grid with likelihood on one axis and consequence severity on the other. This visualization helps teams prioritize risks, allocating intensive management attention to high-probability, high-impact threats while monitoring lower-priority risks. A construction project might rate weather delays as high probability but moderate impact, while structural design flaws as low probability but catastrophic impact. The matrix supports resource allocation decisions, escalation protocols, and communication with stakeholders. Organizations customize matrix scales and thresholds to reflect their specific project types, risk tolerance, and decision-making frameworks.