Risk Matrix Calculator

How the Risk Matrix Calculator Works:

The Risk Matrix Calculator enables systematic assessment of risks based on their likelihood and impact. Here's how it works:

• Likelihood and Impact Assessment: Users assign scores (ranging from 1 to 5) to each risk factor for likelihood and impact.
• Entering Values: Enter likelihood and impact scores for each risk factor into the corresponding cells of the risk matrix.
• Calculating Risk Score: The calculator computes a risk score for each risk factor by multiplying likelihood and impact scores and averaging the results.
• Interpreting Results: Higher risk scores indicate greater potential impact and likelihood of occurrence, guiding prioritization of mitigation efforts.

How to Calculate Risk from a Risk Matrix:

A risk matrix helps you evaluate and prioritize risks based on their likelihood and impact. Here’s a simplified guide to calculating risk using a risk matrix:

• Identify Risks: List potential risks that could affect your project or organization.
• Assess Likelihood: Rate the likelihood of each risk occurring on a scale from 1 to 5:
  • 1 = Very Low (Rare)
  • 2 = Low (Unlikely)
  • 3 = Medium (Possible)
  • 4 = High (Likely)
  • 5 = Very High (Almost Certain)
• Assess Impact: Rate the potential impact of each risk on a scale from 1 to 5:
  • 1 = Very Low (Insignificant)
  • 2 = Low (Minor)
  • 3 = Medium (Moderate)
  • 4 = High (Major)
  • 5 = Very High (Catastrophic)
• Calculate Risk Score: Multiply the likelihood and impact scores for each risk:
  • Risk Score = Likelihood x Impact
  • For example, if a risk has a likelihood of 3 and an impact of 4, the risk score would be: 3 x 4 = 12
• Interpret the Scores: Higher scores indicate higher risks, which should be prioritized for mitigation.

This process helps you systematically evaluate and prioritize risks, making it easier to manage and mitigate them effectively.