Use the Risk Matrix to identify, delegate and resolve risks.
A common method for handling risks is the Risk Matrix. It can be used in projects and in any other business or organizational setting. A Risk Matrix is a convenient tool for identifying, handling and resolving all kinds of risks.
The Risk Matrix is most commonly a 3×3 or 5×5 matrix. One axis represents the probability that a certain risk occurs, while the other axis represents the consequence if the risk occurs. Together, these can be used to visualize, categorize and prioritize risk handling, e.g. in high, medium and low priority.
Dynamic and continuous risk management is desirable in most settings. Dedicated workshops are also common, most often for the identification of risks. After identification, risks should be delegated to appropriate person(s) in order to avoid diffusion of responsibility. If possible, one should also set deadlines for risk resolution or minimization.
For practical purposes, a dynamic risk board has multiple advantages over static documents or presentations updated every now and then.
Benefits of a visual risk board include:
– An always updated and accessible overview of risks
– Opportunities for real-time delegation and notifications to stakeholders
– Makes relevant files and comments easily available – avoiding long email threads
– Possible to integrate with other messaging and chat systems
– Dynamic and traceable history of risk handling
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