Anatomy of the Risk Matrix

摘要

Risk Matrix examples are widely available in literature, and despite their apparent simplicity, they may be challenging to properly design and apply. The Risk Matrix is one of the frequently applied risk management tools used in the energy and chemical manufacturing sectors and across projects, operations, and construction activities. While standards like ISO 31000 [1] provide guidance for designing a risk management process, limited information is available on the considerations for designing a Risk Matrix. Many standardized risk matrices are published yet organizations often choose to construct and implement company-specific risk matrices. A company-specific matrix can convey risk tolerance and support the evaluation and prioritization of risks. If improperly designed, the Risk Matrix may mislead decision-makers, undermine the credibility of the risk process and unintentionally promote unwanted events.