A Risk Assesment Matrix is a graphical matrix that is generally used in risk analysis. This matrix is an easy mechanism to enhance the visibility of managing risks and help decision making with its help. The matrix will also make it possible for both parties in a transaction to see a complete picture of the risk and the risk management process.
Risk Matrix is used in all the processes related to risk assessment, such as managing risk, development, planning, reporting, and control. The matrix is an essential tool to provide visibility of potential risk.
The risk matrix helps in making appropriate management decisions. It can be used to classify risks to reduce or remove them altogether. It can also be used to specify the risk level and identify the probability of risk occurrence, thus enabling the management to make effective risk management decisions.