The risk matrix is based on two intersecting factors: the likelihood that the risk event will occur, and the potential impact that the risk event will have on the business. In other words, it's a tool that helps you visualize the probability vs. the severity of a potential risk.
What is likelihood on risk matrix?
Likelihood on a risk matrix represents the likelihood of the most likely consequence occurring in the event of a hazard occurrence. To put it another way, if a hazard occurs, what are the chances the most likely safety mishap will occur.
What is risk likelihood and risk magnitude?
The magnitude of a risk is measured in terms of its probability of occurrence and the severity of its consequences. Scores can be attributed to represent each probability and severity.
What is magnitude of the risk?
The Risk Magnitude is computed by multiplying the Impact Severity by the Probability.