What is a risk matrix?
A risk matrix (or heat map) plots risks on a grid of likelihood (how probable) against impact (how severe), usually on a 1–5 scale. Multiplying the two gives a risk score; colours show low, medium, high and critical zones.
How to use a risk matrix
- List risks — operational, financial, legal, safety, people, reputation.
- Score likelihood (1 rare – 5 almost certain).
- Score impact (1 minor – 5 severe).
- Calculate risk score = likelihood × impact.
- Choose a response: avoid, reduce, transfer (insure) or accept.
- Assign an owner and review regularly in a risk register.
Risk register example
| Risk | Likelihood | Impact | Score | Response |
|---|---|---|---|---|
| Key supplier fails | 3 | 4 | 12 | Second supplier |
| Food safety incident | 2 | 5 | 10 | Audits, temperature monitoring |
| Data breach | 2 | 4 | 8 | Access controls, backups |
| Fire | 1 | 5 | 5 | Insurance, drills, detection |
Common mistakes to avoid
- Scoring once and never reviewing.
- No owner for each risk.
- Ignoring low-likelihood, catastrophic-impact risks.
How DOOfy helps
Risk scores should change as conditions change. AIMOS One and AIXON monitor the signals behind many risks — temperatures, safety events, supplier delays, unusual transactions — so the risk register reflects what is actually happening.
Frequently asked questions
What is a 5×5 risk matrix?
A grid with five levels each of likelihood and impact, giving risk scores from 1 to 25.
What are the four risk responses?
Avoid, reduce (mitigate), transfer (e.g. insurance or contracts) and accept.