Imagine you’re about to embark on a new project or venture.
You’re excited, but there’s that nagging feeling in the back of your mind — what could go wrong?
Understanding how to assess and manage risks is crucial.
That’s where the 5×5 risk assessment matrix comes in.
In this guide, we’ll break down everything you need to know about the 5×5 risk assessment matrix. You’ll learn what it is, why it’s so useful, and how to use it effectively.
What is a 5×5 Risk Assessment Matrix?
A 5×5 risk assessment matrix is a simple visual tool to evaluate and prioritize risks based on two factors: probability and impact.
The “5×5” refers to its structure: five levels of probability (from rare to almost certain) and five levels of impact (from insignificant to severe). When these intersect, different risk levels are shown in colors like green, yellow, and red, similar to a traffic light system.
This matrix is used across industries — from construction to finance — and can be tailored to specific needs, such as versions adapted to Australian regulations.
Why Should You Use a 5×5 Risk Assessment Matrix?
Prioritise Risks
Proactive Risk Management
Reduce Insurance Costs
Promotes a Culture of Safety
Improves Project Outcomes
Example of 5×5 Risk Matrix:
To dive deep in to 5×5 Risk Assessment Matrix Click here.
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