Likelihood is one of two main metrics that risk managers use to determine priorities. Generally, likelihood can be split into three main categories: low, medium, and high.
Risks that belong in the low-likelihood bracket are acceptable and do not need special management. They do not need to be addressed first. Risks that fall into the medium-likelihood category should be monitored, but are unlikely to receive priority status. Risks that have the high-likelihood label need immediate attention and a dedicated risk management plan.
To get the full picture and determine priorities, a risk manager also has to take the impact of each risk into account. That means that risks with significant impact and high probability get the highest-priority status and most extensive management.
