The “Risk Matrix” – Explained

The “Risk Matrix” – Explained The Risk Matrix is also popularly known as the Probability and Impact Matrix. The Risk Matrix is used during Risk Assessment and is born during Qualitative Risk Analysis in the Risk Management process. It is a very effective... More

The “Risk Matrix” – Explained The Risk Matrix is also popularly known as the Probability and Impact Matrix. The Risk Matrix is used during Risk Assessment and is born during Qualitative Risk Analysis in the Risk Management process. It is a very effective tool that could be used successfully with Senior Management to raise awareness and increase visibility of risks so that sound decisions on certain risks can be made in context. A risk is “rated” for its Probability and Impact on a scale to understand where on the Risk Matrix it lies. Which Risks in the process move forward into the Risk Management process will depend on the industry, company, project and people. Some are by nature more risk tolerant than others. For example, we can have a project where the team agrees that any risk that is in the yellow, orange or red cell can move forward in the Risk Management process. The rest remain in the watch list and are “accepted”. Another project could have different criteria. Less