Risk Analysis Matrix

The Risk Analysis Matrix provides accurate guidance in the consideration of business ventures. Users may be confident in their decisions, which will be based on examining characteristics of the risks of each action.

Risk Analysis Matrix

Risk Analysis Matrix info

  1. High Impact; Low Probability
  2. Contains actions that involve high impact of risks but a low probability of those risks occurring.

  3. High Impact; High Probability
  4. Contains actions that involve high impact of risks with a high probability of those risks occurring.

  5. Low Impact; Low Probability
  6. Contains actions that involve low impact of risks with a low probability of those risks occurring.

  7. Low Impact; High Probability
  8. Contains actions that involve low impact of risks but a high probability of those risks occurring.

Risk Analysis Matrix Template

In each and every decision, there are risks involved- factors that may threaten our confidence in those decisions. When considering business ventures, these risks could determine whether the business thrives or fails. Before making a choice that could have such an impact, it is important to analyze what could happen if the plan were to go wrong. The Risk Analysis Matrix allows the user to stop and think critically about these issues. The risks in each undertaking must not only be recognized, but the possible impact of those risks and the probability of them happening must also be found.

High Impact/Low Probability Risks and Low Impact/High Probability Risks: The actions in these quadrants may be valuable business ventures. However, the actions should be carefully taken into consideration, since issues could still arise. Although the actions in Quadrant 1 have a low probability, they would be very problematic if they were to occur; although the actions in Quadrant 4 are of a low impact, they will likely arise.

High Impact/High Probability Risks: There is no doubt about these actions- stay away from them. These are dangerous business ventures.

Low Impact/Low Probability Risks: These actions are valuable opportunities for your business. Go for it!


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