A risk assessment matrix is a graphical tool that helps people examine how likely a certain risk is to occur and see how strong an impact there would be if the risk did occur, notes Safeopedia. Using this tool can help individuals plan ways to prevent the risk from causing a problem or at least reduce the harm it causes.
Some types of risks that the matrix may include are physical, financial, reputation, facilities and emotional risks, states the University of Michigan. Rankings for severity on a risk matrix vary but can range from negligible to catastrophic. The likelihood ratings also vary but may range from rare or unlikely to frequent, states the University of Michigan. Individuals can use the matrix to look for the most likely risks and reduce their impact.