How does a risk assessment matrix help prioritize risks in a project?
- By assigning numerical values to each risk and ranking them based on their scores.
- By evaluating the severity and likelihood of each identified risk and categorizing them based on their impact.
- By ignoring risks with low severity and focusing only on high-impact risks.
- By randomly selecting risks to address during project execution.
A risk assessment matrix helps prioritize risks by evaluating both their severity and likelihood. Typically, risks are plotted on a matrix with severity on one axis and likelihood on the other. This categorization allows project managers to identify high-impact risks that require immediate attention and allocate resources accordingly. By focusing on risks with the highest potential for negative consequences, organizations can enhance their risk management efforts and improve project outcomes.
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