A risk assessment matrix is a method of evaluating the risk associated with every step in a project. The risk assessment matrix has 3 points that must be considered: probability, impact, and likelihood. In this article, we will discuss each point as well as what it means to the project.
The first point is probability. Probability is the likelihood that a risk will occur. This can be measured on a scale from low to high. The higher the probability, the more likely it is that the risk will happen.
The second point impacts. The impact is how bad the risk would be if it did occur. This can also be measured on a scale from low to high. The higher the impact, the worse the outcome of the risk happening would be.
The third and final point is a likelihood. Likelihood measures how often a risk occurs. This can also be measured on a scale from low to high, with high being a more frequent occurrence.
All three points are important when assessing risks because they give an overall idea of how dangerous a situation could be.
When looking at a Risk Assesment Matrix, it’s important to consider all three points. Probability, impact, and likelihood are all factors that need to be taken into account when determining the severity of a risk. By considering these three factors, businesses can make better decisions about how to protect themselves from potential harm.