WHAT IS RISK MATRIX?
- A risk matrix is a matrix that is used during risk assessment to define the level of risk by considering the category of probability or likelihood against the category of consequence severity. This is a simple mechanism to increase visibility of risks and assist management decision making.
- Although standard risk matrices exist in certain contexts (e.g. US DoD, NASA, ISO), individual projects and organizations may need to create their own or tailor an existing risk matrix.
- In simple words, a risk matrix are probably the inter-industry safety standard for the tool used in risk evaluation. They use “probability” and “severity” to quantify the scope of a real or hypothetical safety scenario.
WHY RISK MATRIX IS IMPORTANT?
- It Creates and presents the risk situation with minimal effort (e.g. as an Excel diagram).
- It visualizes risks in a diagram.
- The risks are divided depending on their likelihood and their effects or the extent of damage, so that the worst case scenario can be determined at a glance.
- It provides the result of the risk analysis and risk evaluation and is therefore an important component of your project and risk management.
