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Risk Matrix
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We’re surrounded by risk but not all risk is created equal, and that’s where this matrix comes in.

Actionable Takeaways
• Brainstorm possible risks.

Ideally consult broadly to identify possible risks, including analysing ...

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Risk Matrix is featured in these playbooks:
Limitations

Risk Matrices are simplified representations and as such do not capture the nuances of various risks, in particular they do not consider change of risk factors over time. They are also often generated through a consultative and co-design approach with a focus on qualitative interviews over quantitative data, which can lead to issues with cognitive bias and human error.

In Practice

Electric energy organisation.

This academic paper from Science Direct describes a relatively robust approach taken to a risk analysis of an electric energy organisation. View the link to see the full paper, but the risk matrix is captured below.

Origins & Resources

Napoleon has been credited with establishing a risk matrix with the consideration of likelihood versus consequences, though we’ve been unable to confirm this and have not attributed the model as a result (though I'd like to think that Napolean was behind this).

My Notes

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