What is a Risk Assessment Matrix a risk assessment matrix is a useful tool that was originally developed to simplify complex financial risk analysis. Yes, any company could use such information to evaluate risks in any given industry. Through doing so, any company can detect and prioritize various risks with great ease. They do so by estimating the expected probability of an event occurring in a given time frame. Such an approach has been used in diverse domains, and due to its practicality, it has been adopted by other industries.
The key to a risk assessment matrix’s reliability lies in the inclusion of several inputs. Each input, in turn, affects the overall value of the result, and thus each must be carefully chosen to ensure the correct probability estimates. Some examples of inputs that could be included in the matrix are customer demographic data, financial measures such as credit ratings, etc.
