« Risk Management in Three Simple Steps
Touching wires causes instant death
The same action can have different risk levels. Considering that I touch the wires: a) IF I get an electric shock THEN I die (risk = probability * impact = 4 * 5 = 20) and b) IF I am caught by the authorities in the attempt THEN I get a fine ( 1 * 1 = 1).
A sign warning that touching the electric wires will lead to death and a fine of USD 200.