Risk Matrix. Visualize risks in a diagram.
What is a risk matrix? How is it created and what advantages does it offer?
What is a risk matrix?
A risk matrix (also called a risk diagram) visualizes risks in a diagram. In the diagram, the risks are divided depending on their likelihood and their effects or the extent of damage, so that the worst case scenario can be determined at a glance.
In this sense, the risk matrix should be seen as a result of the risk analysis and risk evaluation and is therefore an important component of your project and risk management.
Advantages of the risk matrix
The risk matrix:
- Identifies the gravest project risks.
- Creates and presents the risk situation with minimal effort (e.g. as an Excel diagram).
- Presents the risk situation visually and comprehensively.
- Presents the risk situation simply for everyone because no prior knowledge is required to understand it.
- Assesses the efficiency of your risk measures.