Governance Risk-Value Matrix

The Governance Risk-Value Matrix is a 2x2 matrix used to evaluate the risk and value of a project or initiative. It is used to help organizations make decisions on how to best allocate resources.

At a very high level, the Governance Risk-Value Matrix is used in the context of business, risk management.

Governance Risk-Value Matrix quadrant descriptions, including examples
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What is the Governance Risk-Value Matrix?

A visual explanation is shown in the image above. The Governance Risk-Value Matrix can be described as a matrix with the following quadrants:

  1. High Risk/High Value: Projects or initiatives with a high risk of failure, but also a high potential reward, e.g. launching a new product line.
  2. Low Risk/High Value: Projects or initiatives with a low risk of failure, but also a high potential reward, e.g. expanding into a new market.
  3. High Risk/Low Value: Projects or initiatives with a high risk of failure, but also a low potential reward, e.g. launching a new product with limited resources.
  4. Low Risk/Low Value: Projects or initiatives with a low risk of failure, but also a low potential reward, e.g. maintaining existing products.

What is the purpose of the Governance Risk-Value Matrix?

The Governance Risk-Value Matrix is a 2x2 matrix used to evaluate the risk and value of a project or initiative. It is used to help organizations make decisions on how to best allocate resources. The matrix is divided into four quadrants, each representing a different risk-value combination.

The top-left quadrant is labeled 'High Risk/High Value.' This quadrant represents projects or initiatives that have a high risk of failure, but also a high potential reward. These projects should be carefully evaluated and monitored, as they can be very risky but also potentially very rewarding.

The top-right quadrant is labeled 'Low Risk/High Value.' This quadrant represents projects or initiatives that have a low risk of failure, but also a high potential reward. These projects should be given priority, as they are likely to be successful and provide a high return on investment.

The bottom-left quadrant is labeled 'High Risk/Low Value.' This quadrant represents projects or initiatives that have a high risk of failure, but also a low potential reward. These projects should be avoided, as they are likely to fail and provide a low return on investment.

The bottom-right quadrant is labeled 'Low Risk/Low Value.' This quadrant represents projects or initiatives that have a low risk of failure, but also a low potential reward. These projects should be given lower priority, as they are likely to be successful but provide a low return on investment.


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What templates are related to Governance Risk-Value Matrix?

The following templates can also be categorized as business, risk management and are therefore related to Governance Risk-Value 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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