People ask ‘What is a risk assessment matrix?’. A risk assessment matrix is part of risk management decision-making. As part of risk management organizations need to set objectives, identify assets, define risks and assess risks, set risk tolerance levels and find ways to mitigate risks.
The risk matrix is a way to identify risks based on the likelihood that an event will occur. A high risk is one that has a high probability of occurrence and will impact the business significantly. A low risk is one that will not likely occur and will have little impact if it does.
The risk matrix is a visual representation of risk analysis. It shows the risks as a graph, rating them by likelihood of probability and likelihood of severity with the highest level risks are one end, the lowest level on the other, and medium risks in the middle.