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What is a Risk matrix?

A Risk Matrix is used to identify the threats that a project may face. The aim of this matrix is to identify but also to address these threats depending on their severity. To define the risk level of an element, the analysis model is structured with two axes:

  • A horizontal axis that defines the severity
  • A vertical axis that defines the probability

The further an element is placed along each axis, the higher the risk level of that element. To establish the location of the element according to these two factors, the following diagnosis must be done :

  1. Identify the different risks
  2. Define their severity
  3. Define their probability

You can then calculate their potential impact and define priorities in order to manage or mitigate the different risks from the most to least critical. This table allows teams to easily visualize and quantify risks.

Why is a Risk matrix used?

A risk matrix is critical when launching a project. Defining the risks and their impact allows the team to avoid or solve them efficiently. Moreover, it gives the team a broader vision of their project. The advantage of this type of matrix is that it is very effective and can be used at any time during a project. The team can review and address the various risks or modify the elements in this model due to the addition of new factors.

Who uses a Risk matrix?

All teams and companies can find the risk matrix useful during a project particularly during a Kick-off stage.

How to set up a Risk matrix board in iObeya?

To set up a Risk Matrix board in your digital Obeya, follow these steps:

  • Enter your room, then click Configure the room at the bottom right of the screen.
  • Add a blank board to your room.
  • Select the Risk Matrix background from the background catalog.
  • Define a set of Notes according to the different areas of the board (Risk, Action, Other).
  • Your board is now ready to be used.

Pro Tips on how to set up a Risk matrix

To define the severity of a factor, consider the worst possible scenarios and their consequences. To define the probability, you can analyze whether the studied risk has already happened and if so, how frequently. It is important to regularly come back to your matrix in order to remake an analysis and thus redefine the danger of the risks to treat the major elements. Don’t forget that there is no such thing as risk zero and that all risks identified must be dealt with.

Get started with this template