Risk based matrix is a decision-making tool that helps organizations identify and prioritize risks. As defined by the Risk Based Matrix, the risk is an uncertain event or condition that can cause loss (Physical Risk) or an action that will result in one or more negative outcomes (Consequential Risk). The Risk-Based Matrix was developed by Dr. James Reason, who first published it in 1979. He created this system for evaluating whether a certain risk should be accepted, mitigated against, improved upon, transferred to another party, and so on.
A risk-Based matrix is a strategy for assessing the potential business impacts of a disaster or emergency on your company’s operations. Risk-based assessments can be performed at any level in an organization, from individual buildings to entire regions, involving multiple departments and functional areas of responsibility. They help organizations develop appropriate mitigation actions by identifying vulnerabilities and developing strategies for reducing those vulnerabilities over time.