When assessing risks the project team also tries to determine the probability of the risk actually happening and the impact it will have on the project when it does.

In the context of project management, risk impact and probability are crucial concepts in risk management.

Risk Impact: This refers to the potential consequences or outcomes that may arise if a risk event occurs. It assesses the magnitude of the effect that a risk event could have on the project’s objectives, such as schedule, budget, quality, or scope. Impact can be categorized as low, medium, or high, depending on the severity of the consequences.
Risk Probability: This refers to the likelihood or chance that a specific risk event will occur. It involves assessing the probability of occurrence based on historical data, expert judgment, or other relevant information. Probability is often expressed as a percentage or a qualitative assessment (e.g., low, medium, high).

In an interview setting, you could elaborate further by discussing how risk impact and probability are typically assessed and managed in project management processes. This might include techniques such as risk assessment matrices, risk registers, Monte Carlo simulations, or expert judgment. You could also emphasize the importance of regularly reviewing and updating risk assessments throughout the project lifecycle to ensure proactive risk management. Additionally, mentioning the significance of prioritizing risks based on their impact and probability for effective risk response planning would demonstrate a comprehensive understanding of the concepts.