Project Risk-Value Matrix

The Project Risk-Value Matrix is a 2x2 matrix used to evaluate the risk and value of a project. It helps to identify projects that are worth investing in and those that should be avoided.

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

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

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

  1. High Risk, High Value: Projects with a high potential for success, but also a high risk of failure (e.g. launching a new product)
  2. Low Risk, High Value: Projects with a low risk of failure, but also a high potential for success (e.g. expanding an existing product line)
  3. High Risk, Low Value: Projects with a high risk of failure, but also a low potential for success (e.g. launching a new product in an existing market)
  4. Low Risk, Low Value: Projects with a low risk of failure, but also a low potential for success (e.g. expanding an existing product line in an existing market)

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

The Project Risk-Value Matrix is a 2x2 matrix used to evaluate the risk and value of a project. It helps to identify projects that are worth investing in and those that should be avoided. The matrix is divided into four quadrants, each representing a different combination of risk and value.

The top-left quadrant is the 'High Risk, High Value' quadrant. This quadrant is for projects that have a high potential for success, but also a high risk of failure. Examples of projects in this quadrant include launching a new product, entering a new market, or investing in a new technology.

The top-right quadrant is the 'Low Risk, High Value' quadrant. This quadrant is for projects that have a low risk of failure, but also a high potential for success. Examples of projects in this quadrant include expanding an existing product line, entering an existing market, or investing in an existing technology.

The bottom-left quadrant is the 'High Risk, Low Value' quadrant. This quadrant is for projects that have a high risk of failure, but also a low potential for success. Examples of projects in this quadrant include launching a new product in an existing market, entering a new market with an existing product, or investing in a new technology with an existing product.

The bottom-right quadrant is the 'Low Risk, Low Value' quadrant. This quadrant is for projects that have a low risk of failure, but also a low potential for success. Examples of projects in this quadrant include expanding an existing product line in an existing market, entering an existing market with an existing product, or investing in an existing technology with an existing product.


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What templates are related to Project Risk-Value Matrix?

The following templates can also be categorized as business, risk management and are therefore related to Project 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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