A Risk Based Matrix (RBM) is a tool that helps organizations identify, assess, and manage risks. It can be used in various situations, including product development, business process improvement, and project management. The RBM comprises risk factors, risk ratings, and risk responses.
What should I know about this?
Risk factors are the characteristics of a situation that can lead to an adverse outcome. Risk ratings are the likelihood or severity of the adverse effect. Risk responses are the actions taken to mitigate or avoid a negative result.
The RBM is used to identify and assess risks and to develop management plans. It can be applied in any organization, at any level, and in any industry. The RBM is a flexible tool that can be customized to meet the needs of any organization.
When using the RBM, organizations should first identify all potential risks. Once all risks have been identified, they should be rated according to their likelihood and severity. Finally, organizations should develop plans for each risk. Plans should include actions that will be taken to mitigate or avoid the adverse outcome.
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