Risk Assessment Matrix by Risk-Management - BusinessOpportunities.co.za

Risk Assessment Matrix

Assess and prioritize risks based on their likelihood and impact.

A structured template to identify, evaluate, and prioritize risks based on their likelihood and impact, with mitigation and monitoring strategies. This Risk Assessment Matrix template provides a comprehensive approach to identifying, assessing, and mitigating risks while ensuring continuous monitoring and communication across the organization.

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Identify and categorize potential risks.

Define risk categories such as financial, operational, strategic, etc.
Ensure comprehensive coverage by defining the scope and boundaries of each category.

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Identify and list specific risks within each category.

Conduct brainstorming sessions, review historical data, and consult experts.
Document the context and potential causes of each risk.

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2
Assess the likelihood of each risk.

Use a rating scale (e.g., 1-5 or Rare, Unlikely, Possible, Likely, Almost Certain).
Ensure consistent understanding across the team.

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3
Evaluate the impact of each risk.

Rate the impact on a scale (e.g., 1-5 or Minor, Moderate, Major, Critical).
Consider different dimensions of impact, including financial and reputational.

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4
Create a matrix to visualize risks.

Plot likelihood on one axis and impact on the other.
Define risk zones (low, medium, high, extreme) and assign colors for visual clarity.

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5
Prioritize risks based on their position in the matrix.

Rank risks as High, Medium, or Low based on their likelihood and impact.
Consider risk appetite and tolerance when prioritizing.

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6
Develop strategies for mitigating high-priority risks.

Create action plans and assign responsibilities.
Establish timelines for implementation.

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7
Monitor and review risks on an ongoing basis.

Regularly reassess risks and update the matrix.
Track the effectiveness of mitigation strategies and identify new risks.

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Report risks and communicate updates to stakeholders.

Prepare regular risk reports and communicate any changes in the risk profile.
Ensure key risks remain visible to decision-makers and stakeholders.

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Risk-Management