Business Impact Matrix

The Business Impact Matrix is a 2x2 matrix used to evaluate the potential impact of a business decision. It helps to determine the best course of action by weighing the potential risks and rewards of each option.

At a very high level, the Business Impact Matrix is used in the context of business, finance.

Business Impact Matrix quadrant descriptions, including examples
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What is the Business Impact Matrix?

A visual explanation is shown in the image above. The Business Impact Matrix can be described as a matrix with the following quadrants:

  1. High Risk/High Reward: High Risk/High Reward: Investing in a new product with a high potential return, but also a high risk of failure (e.g. launching a new product)
  2. Low Risk/High Reward: Low Risk/High Reward: Investing in a low-risk venture with a high potential return (e.g. investing in a stable company)
  3. High Risk/Low Reward: High Risk/Low Reward: Investing in a high-risk venture with a low potential return (e.g. investing in a start-up company)
  4. Low Risk/Low Reward: Low Risk/Low Reward: Investing in a low-risk venture with a low potential return (e.g. investing in a low-yield bond)

What is the purpose of the Business Impact Matrix?

The Business Impact Matrix is a 2x2 matrix used to evaluate the potential impact of a business decision. It helps to determine the best course of action by weighing the potential risks and rewards of each option. The four quadrants of the matrix represent the four possible outcomes of a decision: high risk/high reward, low risk/high reward, high risk/low reward, and low risk/low reward.

The matrix is used to compare the potential outcomes of different decisions and to identify the best course of action. For example, a company may be considering launching a new product. The Business Impact Matrix can be used to evaluate the potential risks and rewards of the new product and to determine the best course of action.


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What templates are related to Business Impact Matrix?

The following templates can also be categorized as business, finance and are therefore related to Business Impact Matrix: Effort Impact Matrix, Gap Analysis Matrix, Growth Share Matrix, Kraljic Matrix, Outsourcing Matrix, Quadrant Analysis, Risk Analysis Matrix, Risk Value Matrix. You can browse them using the menu above.

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