Not all risks the same. Some are minor with little consequence, while others are not. Every organization or reliability program facings a plethora of risks and being able to communicate the range of identified risks is helped by using a risk matrix.
The risk matrix is a simple two-dimensional grid that lays out on one access the expected consequence of risk, from minor to catastrophic. The other axis has the likelihood or occurrence of the risk becoming realized, ranging from rare too certain.
The boxes within the grid then contain classifications ranging from low to extreme, which provide a prioritization to address the risk in some fashion. Low-risk items are those with rare occurrences and insignificant consequences. The other end of the spectrum are extreme risks that are almost certain to occur and have catastrophic results. [Read more…]