What does the use of a risk matrix help with?

The use of a risk matrix is primarily designed to help visualize the prioritization of risks. By categorizing risks based on their likelihood of occurrence and the potential impact they may have, a risk matrix allows leaders to clearly see which risks require immediate attention and which may be monitored over time. This visual representation aids in decision-making and resource allocation, ensuring that the most critical risks are addressed first.

Understanding the severity of risks in relation to one another is crucial for effective risk management. A risk matrix can illuminate patterns and help communicate risk levels to team members, thereby facilitating a more organized approach to addressing those risks. It doesn't directly reduce the number of risks, provide specific solutions, or eliminate the need for documentation; instead, it serves as a tool to better understand and manage risks effectively.