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 :
- Identify the different risks
- Define their severity
- 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?
Who uses a Risk matrix?
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.