You might be familiar with risk assessment matrices from reading about them in textbooks or taking courses. Still, you may not know what the heck they’re used for. For those looking to learn more about risk assessment matrices and how they can benefit your company, this article will provide everything you need to know!
What is a Risk Assessment Matrix? A risk assessment matrix (RAM) is a tool that incorporates qualitative assessments of potential risks with quantitative estimates of their likelihoods and impacts to help prioritize what should be addressed first. It’s a way for organizations to focus on what needs the most attention and prevent them from being overwhelmed with their possible risks.
Making assessments based solely on qualitative data makes it easier to understand how much priority should be given to each risk. It also means identifying different categories of risks (e.g., operational versus security) and prioritizing risks within each category. What’s more, the matrix is easy to use: it can be created by a single person in less than 60 minutes with minimal data required on potential risks.