risk-matrix

Vocabulary Word

Definition

A 'risk matrix' is a tool used to rank and display potential risks in a project or situation. Imagine it as a table where one side lists the chance of a risk occurring and the other side lists the impact it would have.

Examples in Different Contexts

In project planning, a 'risk matrix' is a tool used to assess the severity and likelihood of potential project risks. It helps in prioritizing risks based on their impact and probability. A project planner might say, 'Using a risk matrix, we can visually identify which risks require immediate attention and allocate resources accordingly.'

Practice Scenarios

Tech

Scenario:

There's new compliance guidelines our app needs to follow. It may complicate our development timeline.

Response:

Let's review our risk matrix to understand the issues related to new compliance guidelines.

Business

Scenario:

The market conditions have changed drastically. We need to evaluate the potential impact on our future growth.

Response:

I agree, we should revisit our risk matrix to identify new challenges impacting our growth.