What Is It?
It is a quick approximation of the risk severity and does not reflect the rigor of a detailed, numerical analysis. The overall risk level can be as simple high, medium, or low (or even high/low), depending on the severity of impact and the probability of the event occurring.
High, Medium, Low Table
It helps identify high, medium and low level risks by looking at the probability of the occurrence and the overall impact to your project. For instance, a highly likely / high impact event is obviously a high risk.
Ignore, Caution, Respond Chart
The green boxes represent a combination of probability and impact that you may safely be able to ignore. The red boxes represent combinations that need to be managed. The yellow box represent risks that should be evaluated individually to determine if you should respond or not.