This article provides some guidance on mapping out the Risk Matrix used to score your Events and Risks within Radar.
The Risk Matrix allows you to grade the Consequence (severity of the risk/event should it occur) and the Likelihood (how often the risk/event is expected to occur).
Both the Consequence and Likelihood can be given a grade between 1-5, with 5 being the least desirable/most catastrophic.
Using the Consequence and Likelihood grades, an overall Risk Sore is calculated.
Risk Score = Consequence x Likelihood
The Risk Score allows you to identify, track and prioritise more urgent Events and Risks that are logged in Radar.
Initially, your Radar system will use our default Risk Matrix which is pictured below:
Our default Risk Matrix provides standardised 'Descriptors' to categorise the type of risk being assessed. Users then grade the Consequence and Likelihood using the detailed descriptions as guidance.
You are able to edit the text and descriptors as needed to customise them to your organisation.
(e.g. within the Financial category a Small loss may be more or less than £100, depending on the size of your business)
Before editing the Matrix within Radar is may help to map out your Matrix text within a spreadsheet.
Attached is a spreadsheet including our default Risk Matrix which you can download at the bottom of this article to use to map out your changes before putting them into Radar.
We suggest testing your Matrix against real scenarios to ensure it works in practice before using it within Radar. Editing your Risk Matrix after is has been used within your Live Radar system may alter the meaning of previous Risk Scores that have been assigned and may lead to you deciding to rescore all previous risks.
Please see our Help Articles on how to customise the Matrix:
- Creating a New Risk Matrix Consequence or Likelihood Category
- Editing a Risk Matrix Consequence or Likelihood Category