Risks are inevitable. Whether you work on a software project, lead a construction project or are responsible for safety in an organisation, you will have to deal with uncertainties. But how do you determine which risks to really take seriously? That is where the risk matrix comes in.
What is it?
A risk matrix (or risk matrix) is a visual tool that helps assess and prioritise risks. It combines two key factors:
- The probability of a risk occurring (likelihood)
- The impact the risk would have if it occurred (consequences)
By bringing these factors together in a matrix, you can quickly see which risks deserve the highest priority.
An Example of a Simple Risk Matrix
| Low Impact | Medium Impact | High Impact | |
|---|---|---|---|
| Low Chance | Low risk | Low risk | Medium risk |
| Medium Chance | Low risk | Medium risk | High risk |
| High Chance | Medium risk | High risk | Critical risk |
Each cell represents a risk level, often visually indicated by colours: green (low), yellow (medium), orange/red (high/critical).
Why is it Important?
A risk matrix helps you to:
- Objectively assess which risks deserve attention
- Prioritise management measures
- Substantiate decisions to stakeholders or management
- Create transparency in risk analyses and project planning
Without such a matrix, you run the risk (pun intended!) of being guided by gut feelings or the most visible problems, rather than facts and assessments.
How to use one?
- Identify risks – Identify potential risks (e.g. through brainstorming sessions, incident analysis or lessons learned).
- Estimate probability and impact – Give each risk a score on probability (e.g.: low, medium, high) and on impact.
- Place the risk in the matrix – Based on the scores, you can see what level of risk it has.
- Take action – For high or critical risks, draw up measures: avoid, reduce, transfer or accept.
- Monitor and review regularly – Risks change with advancing insight, new data or changing circumstances.
Tips
- Adapt the scale to your organisation – Some teams work with 3×3 matrices, others with 5×5 or even 7×7.
- Use clear definitions – Make sure everyone knows what ‘high’ or ‘low’ means, for both opportunity and impact.
- Make it visually appealing – Use of colour and clear labels make the matrix easier to understand.
- Integrate with your risk register – Use the matrix as part of your wider risk management process.
It is not a magic solution, but a practical and powerful tool to get a grip on uncertainty. By approaching risks in a structured way, you make better choices and reduce the likelihood of nasty surprises.
