Excel based, fully customizable risk assessment matrix template using your tolerance for the likelihood and impact of a risk occurring.

This tool will guide you in the following:

1. defining your likelihood and impact thresholds,
2. defining your escalation levels
3. building your risk assessment matrix
4. expressing your risk comfort levels

The purpose of this template is to help you build your risk assessment matrix and articulate your risk appetite using your tolerance for the likelihood and impact of a risk occurring. This tool will be continuously referred to when assessing the risk level of your potential and materialized risks, and determining if you need to take action to lower the risk’s level classification.

A risk is any event that can introduce uncertainty in your ability to meet your business objectives.

You have certain goals that you want for your business and have a plan in place to achieve those goals, but things can and will go wrong along the way to meeting those objectives. Your risk approach to managing these risk is dictated by your comfort level. This is personalized and can differ from one business to the next – from one person to the next.

You will be able to clearly articulate your risk and appetite levels when you have pre-determined the frequency rate, impact and escalation levels you are comfortable with.

Use your risk likelihood and impact matrix to visualize your comfort levels. Watch this video to guide the development of your matrix.

Click here to view video on YouTube.

Related video: Determining Your Risk Appetite