What Is Risk Assesment Matrix?
Risk Assesment Matrix – A Simple Way of Evaluating Risk
A Risk Assessment Matrix is an easy matrix that is frequently used in risk assessment and helps management classify the risk by taking into account the various classification categories of risk.
This is a straightforward methodology to enhance the visibility of managing risks and help management with decision-making. The matrix can be divided into two groups – primary and secondary matrix.
The primary matrix consists of risk definition, estimation of the probability and severity of the risks associated with the identified risk, and its effects on the business. The secondary matrix is composed of various risk factors and their impact on business. The risk matrix helps identify appropriate methods for improving the business quality and profitability through various means, including improving the knowledge base of business and identifying business risk indicators.