Adopting a risk matrix can enable companies to comprehend the risk environment better and handle risks proactively in project management. Benefits of a risk matrix include:
The risk assessment matrix evaluates and quantifies the likelihood and impact of each risk. It helps organisations identify the most significant risks that must be addressed first.
Risk assessment matrices serve as documentation that are a useful reference for stakeholders to understand risk exposure.
The risk assessment matrix enables organisations to make informed decisions for successful risk management. It provides a systematic and objective approach to evaluating risks and their potential impact on the organisation.
By regularly reviewing and updating the risk matrix, organisations can identify new risks or changes in existing risks, prioritise them, and develop new mitigation strategies.