What is a risk matrix?

A risk matrix is a critical tool used in risk assessment processes to categorize and prioritize potential risks by evaluating two key dimensions: the likelihood of their occurrence and their potential impact on the organization or project. This matrix typically presents risks in a grid format, allowing practitioners to visualize which risks pose the most serious threats or require immediate attention and resources.

By plotting risks on the matrix, an organization can easily identify which risks are high priority and require mitigation strategies versus those that may need monitoring but are less critical. This structured approach enables effective decision-making in the risk management process and ensures that resources are allocated efficiently to address the most significant threats.

The other options do not accurately capture the definition and function of a risk matrix. For instance, a schedule for risk assessment meetings focuses on logistics rather than the assessment of risks, while an organizational chart for risk management roles pertains to the structure of responsibilities and hierarchy, not the evaluation of risk itself. A summary of previous risk assessments may provide historical data but does not assist in the current prioritization and assessment of risks.