Video Training for Risk Matrix Settings: Change Risk Zones
Audio Extract for Risk Matrix Settings: Change Risk Zones
Transcript and Screenshots for Risk Matrix Settings: Change Risk Zones
A risk zone is a combination of the 2 risk components: a Likelihood level…
… and a Consequence level.
Therefore, a Risk Zone is a way to refer to a Risk Exposure.
Furthermore, a Risk Zone enables to refer to a Risk Exposure without using any wording which may trigger various interpretations.
For example, instead of referring to a Critical Risk or a Dangerous Risk, we would simply refer to a risk in Zone 5.
This is the same concept as referring to a Consequence Level 5 instead of referring to a Catastrophic Consequence…
… or referring to a Likelihood Level 1 instead of referring to a Very Unlikely Occurrence.
… and, it is also related to the notion of Risk Appetite.
The Zone 5 is for risks which have, at the same time, the highest Likelihood levels, and the highest Consequence levels.
Therefore, the Zone 5 refers to the highest Risk Exposure.
The Zone 1 is for risks which have, at the same time, the lowest Likelihood levels, and the lowest Consequence levels.
Therefore, the Zone 1 refers to the lowest Risk Exposure.
Any other Zones between Zone 5 and Zone 1 refer to risks which exposures are between the highest and the lowest.
For example, risks with a Likelihood level 1, and a Consequence level 5, are currently set to Zone 3.
However, if you click on the drop-down list, you could change from Zone 3 to any other zone, for instance, Zone 4.
The change is immediately reflected throughout the risk management tool.
All risks with a combination of Likelihood level 1 with a Consequence level 5, will now be interpreted as being in Zone 4, and not in Zone 3 anymore.
In summary, the use of Risk Zones is a very convenient way to refer to Risk Exposures, without having to interpret any words qualifying those exposures.
Additional Help & Training
Download the Risk Template in Excel