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Background

Risk Profile Matrix

This is a simple mechanism to increase visibility of risks and assist management decision making. It is a graphical representation of information normally found in existing Risk Logs. It is only one possible representation of a project’s risk status.

The Project Board may choose to have an easy-to-read diagram, for example, included in the Highlight Report.

Risk Analysis

The profile shows risks, using the risk identifier, in terms of probability and impact with the effects of planned countermeasures taken into account.

The Project Manager would update this matrix in line with the Risk Log on a regular basis. In the 3x3, 5x5 and 6x6 risk matrix examples below, any risk shown above and right of the ‘risk tolerance line’ (the thick red line below) should be referred upwards.

The tolerance line is set for the project by agreement between the Executive and Project Manager. As risks are reviewed, any changes to their impact or probability which cause them to move above and to the right of the ‘risk tolerance line’ need to be considered carefully and referred upwards for a management decision on the action to take.

Risk Matrix with Risk Tolerance Line

3 x 3 Risk Matrix 6 x 6 Risk Matrix

 

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