Risk Matrix

A risk matrix is a tool used to assess and prioritize risks based on their likelihood and potential impact. It typically consists of a grid where one axis represents the probability of an event occurring (from low to high), and the other axis represents the consequences if it does happen (also from low to high). By plotting risks on this matrix, organizations can visually identify which risks require immediate attention and which are less critical. This helps in making informed decisions about where to allocate resources and how to manage potential threats effectively.