Risk Matrix Explained: Assessing Likelihood and Impact for Effective Risk Management #3320525 (License: Personal Use)

This 4×4 risk matrix plots likelihood (vertical axis) against impact (horizontal axis), dividing risks into 16 cells color-coded by severity: green (low), yellow (medium), orange (high), and red (critical). It serves as a foundational tool in risk assessment frameworks like ISO 31000 or project management methodologies such as PRINCE2. Organizations use it to prioritize mitigation efforts, allocate resources, and communicate risk exposure clearly across teams.

Commonly used in enterprise risk management, IT security assessments, project planning, and compliance documentation; this image supports educational content, internal training, or policy guides where visual risk prioritization is needed.