Product Development-Risk Matrix

The Product Development-Risk Matrix is a 2x2 matrix used to assess the risk of a product development project. It helps to identify the most suitable projects for development and the ones that should be avoided.

At a very high level, the Product Development-Risk Matrix is used in the context of business, marketing, finance.

Product Development-Risk Matrix quadrant descriptions, including examples
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What is the Product Development-Risk Matrix?

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

  1. Low Risk, Low Return: Low risk, low return projects are those that have a low chance of failure and a low return on investment. Examples of this type of project include creating a basic website or developing a simple mobile app.
  2. High Risk, High Return: High risk, high return projects are those that have a high chance of failure but also a high return on investment. Examples of this type of project include developing a complex software application or launching a new product line.
  3. Low Risk, High Return: Low risk, high return projects are those that have a low chance of failure but also a high return on investment. Examples of this type of project include creating a basic website or developing a simple mobile app.
  4. High Risk, Low Return: High risk, low return projects are those that have a high chance of failure and a low return on investment. Examples of this type of project include developing a complex software application or launching a new product line.

What is the purpose of the Product Development-Risk Matrix?

The Product Development-Risk Matrix is a 2x2 matrix used to assess the risk of a product development project. It helps to identify the most suitable projects for development and the ones that should be avoided. The matrix is divided into four quadrants, each representing a different risk level. The upper left quadrant represents low risk, low return projects, while the upper right quadrant represents high risk, high return projects. The lower left quadrant represents low risk, high return projects, and the lower right quadrant represents high risk, low return projects.

The Product Development-Risk Matrix is a useful tool for businesses that are considering investing in a product development project. By assessing the risk and return of a project, businesses can make informed decisions about which projects are worth pursuing and which ones should be avoided. This matrix can also be used to compare different projects and help businesses determine which ones offer the best return on investment.


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What templates are related to Product Development-Risk Matrix?

The following templates can also be categorized as business, marketing, finance and are therefore related to Product Development-Risk 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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