New Product Risk Analysis Question:

Most businesses will not need to use risk matrices. However, they can be used to help you work out the level of risk associated with a particular issue. They do this by categorizing the likelihood of harm and the potential severity of the harm. This is then plotted in a matrix. The risk level determines which risks should be tackled first.

Using a matrix can be helpful for prioritizing your actions to control a risk. It is suitable for many assessments but in particular to more complex situations. However, it does require expertise and experience to judge the likelihood of harm accurately. Getting this wrong could result in applying unnecessary control measures or failing to take important ones.