The risk matrix is built around two intersecting factors: the likelihood of the risk event occurring and the potential impact on the business. Generally, it is a tool that allows you to visualize the possibility vs. Severity of the potential risk. The risk matrix will visually show you the levels of risk your organization faces. They are frequently used during the risk assessment process to assist you in determining which risk management strategy will be most effective in dealing with them and which risks should be prioritized. A risk matrix, also known as a business risk assessment matrix, is a graph that you can use to plot the Likelihood of certain risks occurring against the impact this would have on your business.
