A Risk Assessment Matrix is a valuable tool for determining the probability of an event occurring and its impact if it did. What makes this matrix different from others is that it also considers how likely an event might occur, making risk assessments more accurate.
1) What is a risk assessment matrix different?
What makes it different from other forms of assessing risks, such as using scales or numbers, is that they take into account how likely an event might occur instead of just focusing on what would happen in the case that something did go wrong. It also includes prioritizing events based upon their severity rather than just frequency. It calculates expected losses by multiplying both together.
They have been proven to be more accurate at determining probabilities because they consider multiple factors. In contrast, others focus only on one aspect.
2) What are some things to consider when filling out a Risk Matrix?
To start, you will need to know your organization’s tolerance for risk or its willingness to take on risks with possible adverse outcomes. You’ll then want to identify all of the potential dangers that could arise in your company – both internal and external – as well as their likelihoods and impacts. Finally, you’ll have to consider how significant each risk is about other variables such as cost or benefit.
It is always a good time to evaluate the use of this helpful tool.