In risk management, what is the difference between risk triggers and the probability–impact matrix?

• A. Triggers are warning signals that a risk is about to occur; the probability–impact matrix measures risk frequency.
• B. Triggers are warning signals that a risk is about to occur; the probability–impact matrix measures risk severity by probability and impact.
• C. Triggers are warning signals that a risk has already occurred; the probability–impact matrix measures time to occurrence.
• D. Triggers identify risk owners; the probability–impact matrix allocates budgets.

Answer: (C)

Triggers are early warning signals that a risk is about to occur, so you can start your response before it materializes. The probability–impact matrix is a qualitative tool that assesses risk severity by combining how likely the event is with how big its impact would be, helping you prioritize which risks to address.

So, triggers serve as readiness cues for action, while the matrix provides a way to rank risks by how serious they are based on probability and impact. The notion that triggers indicate the risk has already occurred is not accurate, since triggers are about impending events, not confirmations. Likewise, the matrix does not measure time to occurrence and is not about frequency alone; it evaluates severity by considering both probability and impact.