Risk Assessment Matrix (RAM) is a visual tool used to identify, evaluate, and prioritize risks in risk management. It helps organizations make informed decisions by categorizing risks based on their likelihood and impact. 📌
Key Components of a Risk Assessment Matrix
- Risk Identification: List all potential risks (e.g., financial loss, operational delays)
- Likelihood & Impact Scale: Use numerical or qualitative ratings (e.g., Low/Medium/High)
- Risk Prioritization: Calculate risk scores (e.g., Likelihood × Impact)
How to Use RAM
- Document risks in a table format
- Assign scores to likelihood and impact
- Determine risk levels (e.g., Critical, High, Medium, Low)
- Develop mitigation strategies for high-priority risks
For a deeper dive into risk management frameworks, check our Risk Management Overview. 📚
If you need a downloadable template, visit Risk Assessment Template. 🧾
Example Use Cases
- Project Management: Track risks during implementation
- Cybersecurity: Assess vulnerabilities in IT systems
- Healthcare: Monitor patient safety risks
Always ensure your RAM aligns with organizational goals and regulatory requirements. 🔍