A risk assessment matrix is a popular tool for visualising and evaluating risk. It typically takes the form of a chart or table where likelihood is plotted against severity (impact) in a structured grid, allowing users to quickly assess risk levels.

Depending on where a risk falls within the matrix, it can be categorised as low, medium, or high, helping organisations or businesses prioritise mitigation efforts effectively.

Why should I consider using a risk assessment matrix?

A risk assessment matrix can be part of the risk assessment process and helps businesses and organisations understand how their activities align with their risk appetite. While high-risk activities may yield substantial rewards, the potential cost when things go wrong may be too great for the organisation to bear.

This visual tool allows businesses to systematically analyse their risks and prioritise those that require urgent mitigation while identifying those that can be borne. Risk matrices therefore help with the in the decision-making process of what levels of controls need to be implemented by providing a structured way to assess exposure and evaluate whether the risks being undertaken are proportionate to the potential rewards.

While popular, risk matrices are controversial. A key concern is subjectivity of personal judgments;— many of the decisions made about risk levels reflect little more than the view of the person doing the assessment, so the results will vary from person to person.
However, people can and do present these judgments as objective fact, which can be misleading and may well be wrong.

Additionally, risk matrices provide only a snapshot of the threat landscape at a given moment. To maintain accuracy, assessments must be updated regularly throughout an activity or project. This ongoing process is known as a dynamic risk assessment and should be part of every risk assessment.

Are risk assessment matrices controversial?