To Create a Risk Matrix The Risk Assessment Context Should Be Clearly Defined and understood as well as the Probability of Occurence of The Risk Scenario and The Potential Impact The Risk Scenario will have on the Achievement of an Organisation’s Vision and Objectives Should It Materialise.
It uses the RAG Rating Approach to Illustrate The Output of a Risk Assessment and is One of the Inputs into the Decision Making Process of an Organisation. Decision Making ProcessĪ Risk Matrix is typically a 3 Dimensional Risk Management Dashboard that is normally used to illustrate an Organisation’s Top 6 to 10 Risks (Risk Assesment Output) and how these Risks Should Be Prioritised from a Resource Allocation Point of View and Senior Management Review Point of View. As we Build Risk Management Knowledge we will never Build it by distorting facts otherwise Managing Risk will forever be seen by many as a Compliance Driven Tick Box Exercise.ĭecision Making is typically described as an ongoing process of making choices by identifiying the purpose of a decision, gathering information to inform Decision Making, and assessing alternatives scenarios in order to make the best decision under the circumstances and/or context. One will never look Handsome by Accusing another Person of being Ugly – That’s a vuluable lesson I learnt from my mom when I was a Small Boy.
#Decision matrix how to#
The Shop Representive smiled and exchanged the Pots and with a smile said “Son there is nothing wrong with the Pots, you must learn how to cook” As I write this Artcle, I am reminded of this Incident, when Professional Risk Managers hide their incompetence or lack of knowledge by blaming effective Tools and/or distorting what a Risk Matrix is and what its Purpose is. I decided to take the Pots back to where I bought them and I requested that they give me new Pots as the ones they gave me were Poor Quality.
Some of the views critising a Risk Matrix remind me when I was a 19 Year old Boy having moved away from home to stay alone, I went to buy knew Pots and almost every day I burnt the food I cooked. This Article is intended to clear confusion caused by some Risk Management Professionals who either do not know what a Risk Matrix is or are seeking to advance their not so Knew Ideas by deliberately distorting what a Risk Matrix is and it’s Purpose.
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