Risk Assessment Matrix

A Risk Assessment Matrix is a tool used to evaluate potential risks by categorizing them based on their likelihood of occurring and the severity of their impact. The matrix typically has two axes: one for the probability of a risk happening (low to high) and another for the impact if it does occur (low to high). By plotting risks within this grid, organizations can prioritize which risks to address first, helping them allocate resources effectively and ensure safety or minimize losses in decision-making processes.