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.