Risk Assessment Matrix Calculator

The Risk Assessment Matrix Calculator is designed for project managers and business analysts to assess potential risks in their projects. By evaluating the likelihood and impact of specific risks, this tool helps in making informed decisions and strategic planning.

Risk Calculator

Authoritative Content Ecosystem

Data Source and Methodology

All calculations are rigorously based on standard risk assessment methodologies as outlined in ISO 31000:2018. For more details, visit ISO 31000:2018. All calculations strictly follow formulas and data provided by this source.

The Formula Explained

The risk is calculated using the formula: Risk Level = Likelihood × Impact

Glossary of Variables

  • Likelihood: The probability of the risk occurring, rated from 1 (very unlikely) to 5 (very likely).
  • Impact: The severity of the consequences if the risk occurs, rated from 1 (negligible) to 5 (catastrophic).
  • Risk Level: A numerical representation of the risk's severity, calculated as the product of likelihood and impact.

Practical Example: How It Works

Consider a project with a potential delay risk. If the likelihood of this delay is 3 (possible) and its impact is 4 (major), the risk level is calculated as 3 × 4 = 12, indicating a moderate risk that requires management.

Frequently Asked Questions (FAQ)

What is a Risk Assessment Matrix?

A Risk Assessment Matrix is a tool used to define the level of risk by considering the category of probability or likelihood against the category of consequence severity.

How is the Risk Level interpreted?

The Risk Level helps prioritize risks for management, with higher numbers indicating more critical risks.

What are common uses of a Risk Assessment Matrix?

It is commonly used in business operations, project management, and safety inspections to identify, assess, and manage potential risks.

Can this tool be used for personal projects?

Yes, the Risk Assessment Matrix Calculator can be used for both professional and personal projects to evaluate risks.

What should I do after identifying high-risk areas?

Develop a risk management plan to mitigate potential impacts, and monitor risks continuously.

Tool developed by Ugo Candido. Content reviewed by our expert team.
Last reviewed for accuracy on: October 10, 2023.

```