The matrix can be used to assess the criticality and probability of a risk. To do this, the probability of the risk occurring is indicated on the Y axis, and how much it affects the result or project is indicated on the X axis. Then the matrix cells are colored in different colors, which helps to visually highlight the most and least critical events. For example, a risk assessment matrix or map can be presented as follows.
The matrix content shows that each event
Can have a different level of risk. Threats colored red and orange are the most dangerous. Measures must be taken to avoid them. Yellow risk areas are moderately slovenia phone number library dangerous. They usually use the threat mitigation strategy. Green ones are practically safe, but such risks also need to be addressed. For example, use the strategy of transferring and eliminating negative factors. Descartes square To determine the risk levels, Descartes square is used.
This tool allows you to evaluate all
It can be used to thoroughly analyze each negative event. One way to assess risks is the Cartesian square Let’s say the manager demands to assess how critical not only do they stay on the quality reduction of the product is for the company. To do this, we answer the questions sequentially and fill in Descartes’ square: What happens if the event happens? If the quality of the product deteriorates, we may lose some customers, get negative reviews and ruin our reputation.
What happens if the event does not happen?
If the quality of the product does not deteriorate, our customers will be happy, we will receive positive feedback and our reputation will not be damaged. We will be able to get ahead of our competitors . What won’t happen if the event happens? If the quality of the product doesn’t deteriorate, we won’t invest money in restoring our reputation and returning some customers.
What won’t happen if the event doesn’t happen?
If the quality of the product doesn’t deteriorate, we won’t upgrade production. We conclude: from the description and answers we learned that this risk has a significant impact on the company. SWOT analysis The level of danger of each risk is also determined using cg leads SWOT analysis. To do this, the company’s strengths and weaknesses are compared, and based on them, the opportunities, negative consequences, and impact of risks are described. To assess the degree of danger, the cost of risk, and possible losses, qualitative and correlation analysis are used. More details about all types of SWOT analysis were written in this article.