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 safety management, a 'risk matrix' is employed to evaluate and categorize risks by their potential impact on safety and the likelihood of their occurrence. A safety officer might explain, 'The risk matrix guides us in implementing preventive measures to ensure worker safety.'

Practice Scenarios

Operations

Scenario:

There's a forecast of a possible labor strike in our primary manufacturing unit. It may impact our product delivery schedule.

Response:

Based on the risk matrix, we need to create contingency plans for the labor strike.

Quality-assurance

Scenario:

The feedback from our users highlights several bugs in our software. It could potentially hurt our product reputation.

Response:

We need to update our risk matrix immediately to address the bugs highlighted by the users.