A Risk Assessment Matrix is a method for companies to assess the anticipated frequency and severity of incidents (risks) to a system, process, facility, or group of people, then graphically present those risks.
The graphical representation allows risk management professionals to see how addressing the potential severity or frequency of incidents will impact their placement, and level of importance.
The frequency of occurrence of a given event or “scenario” reviews whether an event is expected to happen on a regular basis, an occasional basis or rarely/never.
The expected severity (loss) if the event does occur is rated on how “bad” the loss may be. For example, is it a first aid or simply recordable injury, does an injury event result in a restricted or lost workday case (RWD/LWD), or does the event result in something catastrophic like an employee fatality, serious business interruption, or loss of marketplace or public trust?
By placing these risks on a graph, risk management professionals can decide which ones they are willing to accept, and which they do not wish to accept, and thus need to flag for further attention. It may not be possible to eliminate every risk, thus the risks may be mitigated on the matrix by addressing frequency of occurrence, severity of an occurrence, or both.
The goal is to bring risks to acceptable levels.
The benefits of a Risk Assessment Matrix are as follows:
- Allow users to visualize which risks are unacceptable
- Identify which “acceptable” risks are “on the cusp” of unacceptable and which should be addressed
- Provide a visualization of where risks should be on a frequency/severity basis after they have been mitigated
At QP3 ErgoSystems, our team is ready to help you develop your Risk Assessment Matrices, for one project, one process, or many.
Contact us today at firstname.lastname@example.org, or click on this link to fill out an information request. We can help!