Risk Matrix: Pro's and Con's

How a risk matrix can make or break your business

The risk matrix is the most commonly used tool to rank and prioritise risks.  They can be simple (3 x 3 likelihood versus consequence), or complex (multidimensional risk trackers).  Some are used to communicate an organisation's risk appetite; others are used to prioritise which risks to expend valuable resources on.

Optimising your matrix for your organisation is vital if it is to be a reliable and useful tool.  If designed correctly, your matrix can become your central risk dashboard, allowing you to prioritise your risks for decision-making, while highlighting fluctuating opportunities and threats before they impact on your business.