Risk Assessment Matrix
Definition - What does Risk Assessment Matrix mean?
A risk assessment matrix is a method for evaluating both the probability and severity of a specific action or inaction that is expected or anticipated to occur. Examples of the various degrees of probability include frequent, likely, occasional, seldom or unlikely. Examples of severity can include catastrophic, critical, marginal, or negligible. Activities that are considered to be both frequent and catastrophic would be considered extremely high risk, while activities that are both unlikely and negligible would be considered low risk. In addition to identifying the risks, the matrix requires recommendations to minimize or eliminate these risks.
A risk assessment matrix may also be called a risk matrix.
Safeopedia explains Risk Assessment Matrix
The risk assessment matrix can be a very valuable evaluation tool for almost any organization that has the potential for harm or injury to occur. The completion of the risk assessment matrix assists an organization in ranking the most important to least important actions that require attention. The matrix should be reviewed on an annual basis and updated anytime that a new activity is undertaken. Once the initial assessment has been completed, should the loss mitigation activities take place, the matrix should reflect what the minimized risk level.