For example, the U.S. Occupational Safety and Health Administration (OSHA) has specific matrices workers can use when responding to natural disasters: Of course, a risk rating matrix is simply a tool to help guide decision-making. Healthcare organizations are under strict regulations when it comes to risk and compliance, meaning establishing a risk assessment and determining where those risks exist are extremely important for the business, both legally and functionally.Creating a plan to handle risk can help to identify the most severe threats, assess their likelihood, and determine how to mitigate them. It reflects risks and their impact, as well as the automated and manual controls available to help limit the resulting losses. After you’ve used the matrix to quantify the severity and likelihood of risks, it’s up to your team to come up with a risk response plan for those ranked “GU.” Depending on your industry or organization size, you may have additional resources for risk assessment and response. It can help you to plan ahead so that the impact is not as bad as it would be if you had no plan in place at all.When dealing with risk analysis, you have two types of risk to consider.
Some examples of potential threats are:Once you have a list of potential threats, you will need to determine what the chances are that such a threat will occur and what that threat’s potential impact could be. Use the risk matrix provided to identify the risk rating of the hazard and activities to help you prioritize control measures. Set sharing settings within dashboards to ensure that only authorized users have access to confidential information, so your organization remains compliant with HIPAA regulations.Interested in learning more about how Smartsheet can help you accurately and securely document healthcare processes and maximize your efforts? Our free risk matrix examples contain a variety of types for different industries, so you can find one that best fits your needs. Threats to data, systems, and networks originate from a variety of sources, ranging from natural disasters to hardware failures. This template allows you to rate risk impact and likelihood both before and after mitigation, and note the actions that will be taken to manage the impact of risks. Factor in data and system requirements, the time it will take to recover data/system functioning, and the minimum staff and equipment needed to conduct business in the meantime.This risk matrix example shows you how to anticipate risks your company may experience, so you can prepare to address them before they impact your bottom line. Many organizations get an even clearer picture of risk by dividing the matrices into zones:To ensure you’ve chosen the right risk matrix chart and completed it correctly, validate it with a real-world scenario. After determining the values for the severity and likelihood, use the grid to determine the risks that need to be addressed first.This 3x4 risk matrix template uses non-numeric scales for likelihood and severity; after selecting the options for each parameter, use the values in the matrix to determine the level of severity for each risk.The 5x5 matrix template provides additional scaling options; this template is ideal for organizations that need more granular insight into each risk. To determine the value of the risk, you would take the probability of the threat (let’s say 80%) and multiply this by how much it would cost your business to fix the issue (let’s say $50,000). It’s also advised that you go over your risk analysis and assessments every 3 years, or anytime a change needs to be made.Reasonably practicable means finding a balance between the risk levels and what is needed to control it. Is risk analysis really necessary? However, in IT, many risks are human-related, such as external threats (hackers or terrorists), insider threats (ex-employees who have login credentials), or trusted insiders (current employees who gain improper access).This IT risk analysis matrix allows you to plan responses to the most catastrophic risks, contain moderate risks, and monitor less severe ones. Through the analysis, you’ll be able to understand them better too. There are many roles in the business that may require you to make a decision that may have some element of risk involved. The risk management team should always carefully analyze both the matrices and the risks themselves before deciding how to prevent, mitigate, or respond to a current or potential risk. For example, determining if the action needed is grossly out of proportion to the risk itself.
Risk analysis identifies the probability and impact of obstacles in a project. Know the status of your business at a glance, gain insights, and accelerate your team’s innovation all in one platform.Discover how Smartsheet dashboards will help your team make better-informed decisions.