We can apply a risk matrix to a set of data to determine the risk that a hazard poses. We can do this with the INDEX and MATCH function. In this Matrix, the Y-axis tells us the SEVERITY of the risk involved and the X-axis tells us the LIKELIHOOD of occurrence of the RISK. Hence, the RISK of a hazard is calculated as:
Risk of hazard = likelihood of occurrence (probability) * Severity of harm
We will walk through the steps below to understand the process.
Figure 1: How to Use a Risk Matrix
Formula
The formula in Cell D13 is given as:
=INDEX(C5:G9,MATCH(Severity,B5:B9,0),MATCH(Likelihood,C4:G4,0))
Setting up the Data
We will set up the risk matrix by doing the following:
- We will type the severity on the Y-axis (Cell B5 to Cell B9)
- We will type the likelihood on the X-axis (Cell C4 to Cell G4)
- We will input the numbers as shown in figure 2 in the range of C5:G9
- Cell C11, C12, and C13 will be named likelihood, severity, and result respectively
- Cell D11 and D12 will be named as RARE and MODERATE respectively
Figure 2: Setting up the Risk Matrix Data
Determining the Risk
- We will click on Cell E11
- We will type in this string:
=MATCH(D11,C4:G4,0) - Click on Enter
- Likewise, we will click on Cell E12
- We will type in this string:
=MATCH(D12,B5:B9,0) - We will click on Enter
Figure 3: Determining the Result of the Inputted Data in the Risk Matrix
We will type the formula below into Cell D13
=INDEX(C5:G9,MATCH(D12,B5:B9,0),MATCH(D11,C4:G4,0))
Figure 4: Determining the Result of the Inputted Data in the Risk Matrix
We will press enter
Figure 5: Result of the Inputted Data in the Risk Matrix
Explanation
- MATCH function
The match function matches the lookup value within a specified range and we have set it to return an exact match. For instance, when determining the likelihood in the example, we typed in the string below:
=MATCH(D11,C4:G4,0)
D11 is the lookup value, C4:G4 is the range and zero indicates an exact match.
The same scenario applies to determine the severity.
- INDEX function
The INDEX function returns the number or value that is present in ROW 3 and COLUMN 2 based on this string: =INDEX(C5:G9,E11,E12)
This method is preferred to the ALTERNATIVE METHOD because we can vary the SEVERITY and LIKELIHOOD in Cells D11 and D12 respectively to AUTOMATICALLY get the result.
Alternative method
- We will click on Cell D13
- We will type the string below into the Cell
=INDEX(C5:G9,MATCH(D12,B5:B9,0),MATCH(D11,C4:G4,0)) - We will click on Enter
Figure 6: Result of the Alternative method of applying the Risk Matrix
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