What does a "risk matrix" help to evaluate?

A risk matrix is a vital tool in risk management that helps organizations assess and prioritize risks according to their likelihood of occurrence and the potential impact on the organization. By plotting risks on a matrix, businesses can visualize the relationship between the probability of a risk event happening and the severity of its consequences. This graphical representation aids decision-makers in identifying which risks require immediate attention or mitigation strategies, aligning resources effectively to manage the most critical threats.

The focus on likelihood and impact enables organizations to develop a more structured approach to risk management, facilitating informed decisions that can protect the organization from adverse events while also prioritizing resources. This systematic evaluation plays a key role in safeguarding business continuity, enhancing overall security posture, and ultimately supporting strategic objectives.