What is a risk matrix?

A risk matrix is a tool that helps organizations assess and prioritize risks by evaluating two critical dimensions: the likelihood of a risk occurring and the potential impact it could have. By plotting risks on a grid, stakeholders can visually identify which risks require immediate attention versus those that may be lower in priority.

This prioritization allows security professionals to allocate resources more effectively, ensure that critical risks are managed, and develop appropriate mitigation strategies. The matrix also facilitates communication among team members by providing a clear and standardized approach to risk assessment. Using a risk matrix enhances decision-making processes by allowing decision-makers to focus on the most significant risks that could affect an organization's objectives.

Other options presented, while relevant to security assessments and risk management, do not capture the specific purpose and utility of a risk matrix in evaluating and prioritizing risks effectively.