If you consider the previous example, then there are exactly three colours and each risk can be placed in a tile with a unique color. You will come across this presentation more often for a risk matrix. What exactly do the colors mean?
- Green: Areas where no further measures for risk reduction are necessary
- Yellow: Areas where the risks have been reduced as much as possible (also known as the “ALARP area”: As Low As Reasonably Practicable)
- Red: Areas where risks are not acceptable in any case
This division is not always sensible, but it makes the process of risk management more transparent. If you find risks in the red area, then you have to take recommended measures to bring it into the ALARP area. If that is not possible, then carry out a cost-benefit analysis for the revelant risks.
Normally you cannot reduce the extent of damage of a risk through your measures – but the likelihood of occurence. So, if you determine an evaluation level for the likelihood of your risks occurring and use that to determine a risk diagram, you should pay attention to the following:
If a risk has the lowest likelihood of occurring, but the highest extent of damage, it should land at least in the yellow section of the risk matrix. So it is still acceptable there.