Risk Based Matrix is a tool used to assess risk in various contexts. This tool divides elements from high-risk scenarios into a matrix with varying levels of severity. The purpose of the matrix is to help organizations create an action plan for mitigating risks and improving operational performance.
The Risk-Based Matrix evaluates various factors such as potential impact, probability, timing, and the likelihood of occurrence. It takes all the potential factors into account and assigns each one an individual rating or score on a given scale, which can then be added up to determine the overall risk level. This allows organizations to prioritize risks based on their severity level and make informed decisions about how they should proceed accordingly.
Using the matrix helps organizations set realistic goals and objectives going forward with their operations while also helping them identify areas where additional resources may be necessary or where changes need to be made.