Hi Sara
This is a standard used by managers of any project in order to evaluate and manage risk.
Prince2 uses the same methodology. The probability is then multiplied by the cost of the consequences to give a risk value. This will inform the decision as to how much effort can be applied to dealing with it.
Best Wishes, and stay safe!!
Peter

And similar to diagrams I've used when teaching English language to explain the words of different degrees of things. eg freezing-cold-warm-hot-boiling.