Risk Matrix Template for Excel (2024)

Projects are risky, but risks can be managed. You can identify risk, prioritize it and assign a team member to own that risk and be responsible for resolving it. Not too complicated—but you can easily become disorganized.

That’s why you need ProjectManager’s free risk matrix template for Excel. With it, you can take any potential issue and determine how much of a risk it is and what impact it could have on the project. Download ProjectManager’s free risk matrix template for Excel and start managing your project’s risks.

What Is Project Risk?

Risk represents uncertainty. It’s an event or condition that might occur in your project and, if it does, will create either a negative or positive impact.

Risk Matrix Template for Excel (1)

Yes, there is such a thing as positive risk! It can take the form of an unexpected event, like an economic situation that causes the raw materials you need for your project to drop lower in price.

Typically though, when we think of risk, we’re expecting something bad. And risk can indeed have very bad consequences. There might be a labor dispute that results in your workforce stepping off the job. There could be a natural disaster, global unrest or just mechanical difficulties that impact the triple constraint of your project—time, cost and scope.

What Is a Risk Matrix?

A risk matrix is a project management chart that’s used to plot risk against the likelihood of it happening and the severity of the impact on your project.

The risk matrix is a grid. The left side has a scale representing the likelihood of the risk occurring, from rare to almost certain. The top of the grid addresses the severity of the risk, from insignificant to severe. By plotting the risk on the risk matrix, you get a better idea of how much attention should be paid to it.

Why You Need a Risk Matrix Template

Risk is inherent in any project. The best thing you can do is develop a risk management process to identify and correct issues before they become problems. That’s why you need this risk matrix template for Excel.

A risk matrix can be a communication tool, too. You can use it to let the project team know the risks that might occur during a project. This way, they can keep their eye out for them and alert others if a risk becomes an issue. This awareness means that risk will undoubtedly have less impact on a project.

Manage risk better than a risk matrix with ProjectManager. Our cloud-based software delivers a real-time risk matrix and lets you view risks in a live project menu. Our powerful, updateable list can sort, drag and drop, filter and more. Create tasks devoted to only risks that can then be assigned to team members, with dates, priority, tags and more. Get started with ProjectManager today for free.

When to Use a Risk Matrix Template for Excel

The best time to utilize this risk matrix template is during the planning phase of a project. It’s part of a risk management plan of identifying risks and coming up with methods to address and resolve them.

However, ProjectManager’s risk matrix template can be used throughout the life cycle of the project as well. After planning comes execution, and during this phase, new risks might arise. Therefore, the risk matrix template must be constantly reviewed and revised to keep it up-to-date.

Who Updates the Risk Matrix Template?

The risk matrix is usually the responsibility of the project manager. They are the ones making the plan, working closely with stakeholders and conducting research to better understand the details of the work.

Once a risk has appeared as an issue, however, the owner of that risk is responsible for leading the effort to resolve it. The project manager or whoever on the project team is responsible for maintaining the risk matrix, will update it as needed. This means reviewing the document and updating it as the time, cost and scope of the project change.

How to Use ProjectManager’s Risk Matrix Template for Excel

  1. Download ProjectManager’s free risk matrix template for Excel to start safeguarding your project.
  2. When you do, fill in identifying info for the project at the top of the page.
  3. Fill out the date. The date shows when the risk matrix was last revised, so you know you’re working off the most current version.
  4. Then we come to the meat of the meal, the risk matrix. This grid is laid out with the top row indicating the severity of the risk. The range is from insignificant to severe.
  5. Up the left-hand side is the likelihood that the event will occur in the project. This range is from rare to almost certain.
  6. Plot the risk and determine the priority. Green indicates a low priority, yellow is medium priority, orange is high and red is very high.

Managing Risk With ProjectManager

Now you have your risks identified and plotted on the risk matrix template, but next comes the hard part. How do you manage the risks that appear in the project and address them before they derail all your hard work? ProjectManager is an online tool that helps you do just that.

Create Project Plans from Start to Finish

Start by setting up your plans in our online Gantt chart view, which can organize tasks, link dependencies, set milestones and assign work to the risk owner. Filter the critical path and then set baselines to help track your actual progress against the plan and make sure you’re staying on track. You can also create tasks for risks.

Track Risk on Live Dashboards

There are more features to monitor and track risk. Our live dashboard gives a high-level view of the project that captures real-time data so you can make insightful decisions. It collects data and automatically calculates progress and performance, which is then displayed in easy-to-read graphs and charts.

Use Kanban Boards to Track Risk

Another one of our multiple project views is the kanban board. Teams tend to use these to manage their backlogs and plan how to resolve issues. Managers get transparency into the process so they can allocate the necessary resources to keep the teams working at capacity. You can’t avoid risk in a project, but with our tool, you can keep those risks from ruining your project.

Other Templates to Help Manage Risk

The free risk matrix template for Excel is only one of the dozens of project management templates you can download. Some templates open up in ProjectManager for a free trial or stay in the always-free version of the tool. For once, there’s no risk with these templates.

IT Risk Assessment Template

While this free template is designed for an IT environment it can be used for managing any project risk. It gives you a place to collect all the risks, name them and the actions necessary to mitigate the risk.

Risk Register Template

Another free template, this one a risk register, which allows you to describe the risk, note the impact it could have on the project as well as detail the response if it does show up. You have a column in which to note the priority of the risk, who owns it and more.

Action Plan Template

ProjectManager’s free action plan template allows you to lay out the response to the risk when and if it shows up in your project. It lists the steps needed to resolve the issue, who owns it, the priority, tasks and more. There’s a timeline and a list of the needed resources, too.

Related Content

If you’re still curious about risk and how to manage and mitigate it in your project, ProjectManager has tons of free blogs, tutorial videos and guides for you to explore. ProjectManager has evolved into a project management hub. Here are a few links to get you started.

  • Risk Analysis 101: How to Analyze Project Risk
  • The Risk Management Process in Project Management

You can download free templates and learn about all aspects of project management on the site. We recommend you give ProjectManager a try, though, as it helps you through every phase of a project, even mitigating risk, and improves efficiency and productivity. Try ProjectManager today for free.

Risk Matrix Template for Excel (2024)

FAQs

How do you create a risk matrix in Excel? ›

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.

Is there a standard format for risk matrix? ›

In 2019, the three most popular forms of the matrix were: a 3x3 risk matrix (OHSAS 18001) a 5x5 risk matrix (MIL-STD-882B) a 4x4 risk matrix (AS/NZS 4360 2004)

How do you create a simple risk matrix? ›

How do you calculate risk in a risk matrix?
  1. Step 1: Identify the risks related to your project. ...
  2. Step 2: Define and determine risk criteria for your project. ...
  3. Step 3: Analyze the risks you've identified. ...
  4. Step 4: Prioritize the risks and make an action plan.
13 May 2022

What is 5x5 risk matrix? ›

What is a 5x5 Risk Matrix? A type of risk matrix that is visually represented as a table or a grid, a 5x5 risk matrix has 5 categories each for probability (along the X axis) and impact (along the Y axis), all following a scale of low to high.

How do I create a data matrix in Excel? ›

How to create a matrix in Excel
  1. Display the "SmartArt" window. To display the "SmartArt" window, click on the "Insert" tab on the command ribbon. ...
  2. Choose your matrix. ...
  3. Enter your data into the matrix. ...
  4. Design your matrix. ...
  5. Include additional details. ...
  6. Save your worksheet.
29 Sept 2021

What is a simple risk matrix? ›

​​​​​​​​​​​​​​​The Simple Risk Matrix relies on probabilit. y and severity scores of high, medium or low to assign relative risk rankings. The colour-coding in the matrix provides you with a visual sense of the relative priority attached to a hazard.

What does a typical risk matrix look like? ›

Risk matrices all follow the same basic structure. They are typically 5x5 grids that show the likelihood of risks occurring along the Y axis and the severity of their consequences along the X axis. Each axis follows a scale of very low to very high.

What is a 4x4 risk matrix? ›

For example: a 4x4 risk matrix may look something like this: Severity- Low Risk- one minor injury. Medium Risk- one severe injury or multiple minor injuries. High Risk- one death or multiple severe injuries.

What is risk matrix formula? ›

Risk = Likelihood x Severity

The risk is how likely it is that harm will occur, against how serious that harm could be. The more likely it is that harm will happen, and the more severe the harm, the higher the risk. And before you can control risk, you need to know what level of risk you are facing.

What is a risk matrix diagram? ›

A risk matrix (also called a risk diagram) visualizes risks in a diagram. In the diagram, the risks are divided depending on their likelihood and their effects or the extent of damage, so that the worst case scenario can be determined at a glance.

What are the 3 levels of risk? ›

1.3 Risk levels

We have decided to use three distinct levels for risk: Low, Medium, and High. Our risk level definitions are presented in table 3. The risk value for each threat is calculated as the product of consequence and likelihood values, illustrated in a two-dimensional matrix (table 4).

What are the 4 main categories of risk? ›

The main four types of risk are:
  • strategic risk - eg a competitor coming on to the market.
  • compliance and regulatory risk - eg introduction of new rules or legislation.
  • financial risk - eg interest rate rise on your business loan or a non-paying customer.
  • operational risk - eg the breakdown or theft of key equipment.

What are Level 1 Level 2 and Level 3 risks? ›

Risk Level & Designation Determination

There are three risk levels: Level 1 (low risk of repeat offense), or. Level 2 (moderate risk of repeat offense), or. Level 3 (high risk of repeat offense and a threat to public safety exists).

What are the 8 risk categories? ›

Risks Associated With International Activities

3 The OCC has defined eight categories of risk for bank supervision purposes: credit, interest rate, liquidity, price, operational, compliance, strategic, and reputation. These categories are not mutually exclusive.

Is there a matrix template in Excel? ›

Then you also have excel matrix templates that can help you make decisions. Basically, you can list the pros and cons and weigh them against each other. Thus, the Excel matrix templates are of a versatile nature.

What is an Excel matrix format? ›

Introduction to Matrix In Excel. A Matrix is an array of elements. It mostly took the rectangular shape when formed. It's been arranged in rows and columns. It is used to show the placement of two elements along two axes.

Is there a matrix function in Excel? ›

The MMULT function returns the matrix product of two arrays. The result is an array with the same number of rows as array1 and the same number of columns as array2.

What are the 5 levels of risk? ›

Most companies use the following five categories to determine the likelihood of a risk event:
  • 1: Highly Likely. Risks in the highly likely category are almost certain to occur. ...
  • 2: Likely. A likely risk has a 61-90 percent chance of occurring. ...
  • 3: Possible. ...
  • 4: Unlikely. ...
  • 5: Highly Unlikely.
18 Mar 2021

What are the minimum 3 dimensions of a risk? ›

Risk Assessment Using the Three Dimensions of Probability (Likelihood), Severity, and Level of Control - NASA Technical Reports Server (NTRS)

What are the 5 things a risk assessment should include? ›

You can do it yourself or appoint a competent person to help you.
  • Identify hazards.
  • Assess the risks.
  • Control the risks.
  • Record your findings.
  • Review the controls.
10 Oct 2022

What should be contained in a risk matrix? ›

Risk matrix may include arrows, which represent probability and impact of risk after mitigation. It is also possible to changes in risk probability and impact during the course of the project. It is also possible to show total number of risks associated with each cell of risk matrix.

What are the 4 C's in risk assessment? ›

4C's risk management services encompass each phase of the risk lifecycle – identification, analysis, evaluation and treatment – and integrates risk with business continuity and crisis management to ensure organisation-wide resilience.

What is the basic risk formula? ›

Risk is the combination of the probability of an event and its consequence. In general, this can be explained as: Risk = Likelihood × Impact.

What are examples of risk metrics? ›

Examples
  • Deaths per passenger mile (transportation)
  • Probability of failure (systems reliability)
  • Volatility (finance)
  • Delta (finance)
  • Value at risk (finance/actuarial)
  • Probability of default (finance/actuarial)

How do you create a project risk matrix? ›

Once you have one, you can reuse it and share it with others.
  1. Identify project risks. You'll need a list of potential risks to make use of your risk matrix. ...
  2. Determine severity of risks. ...
  3. Identify likelihood of risks. ...
  4. Calculate risk impact. ...
  5. Prioritize risks and take action.
16 Mar 2022

What are the 7 steps of risk management? ›

The 7 steps below provide a good framework for effectively managing project risk.
  • Step 1- Outlining Objectives. ...
  • Step 2 – Risk Management Plan. ...
  • Step 3 – Identification. ...
  • Step 4 – Evaluation. ...
  • Step 5 – Planning. ...
  • Step 6 – Management. ...
  • Step 7 – Feedback.
10 Jul 2017

What are the 10 P's of risk management? ›

Introduction; Implications of the 10Ps for business; 10Ps - Planning; Product; Process; Premises; Purchasing/Procurement; People; Procedures; Prevention and Protection; Policy; Performance; Interaction between all the elements; Conclusion.

What are the six risk categories? ›

Riskology
  • Health and safety risk. General health and safety risks can be presented in a variety of forms, regardless of whether the workplace is an office or construction site. ...
  • Reputational risk. ...
  • Operational risk. ...
  • Strategic risk. ...
  • Compliance risk. ...
  • Financial risk.
8 Sept 2021

What are the 3 pillars of operational risk? ›

In this chapter, we discuss the three pillars of operational risk management: capital allocation, transfer of operational risk through insurance, and proactive mitigation of operational risk through product inspection and quality control. Thorough operational risk management will generally involve all three pillars.

What are 4 basic strategies to manage risk? ›

There are four main risk management strategies, or risk treatment options:
  • Risk acceptance.
  • Risk transference.
  • Risk avoidance.
  • Risk reduction.
23 Apr 2021

What are the 12 principles of risk management? ›

12 Principles of Risk Management (PMBOK – with an Agile slant)
  • 1) Organisational Context. ...
  • 2) Stakeholder Involvement. ...
  • 3) Organisational Objectives. ...
  • 4) Management of Risk Approach (N/A) ...
  • 5) Reporting. ...
  • 6) Roles & Responsibilities. ...
  • 7) Support Structure. ...
  • 8) Early Warning Indicators.
28 Jul 2009

What are the six major risk processes? ›

  • Step 1: Hazard identification. This is the process of examining each work area and work task for the purpose of identifying all the hazards which are “inherent in the job”. ...
  • Step 2: Risk identification.
  • Step 3: Risk assessment.
  • Step 4: Risk control. ...
  • Step 5: Documenting the process. ...
  • Step 6: Monitoring and reviewing.

What are the 11 principles of risk management? ›

Here are 11 principles to consider for your business risk management plan:
  • Create and protect value. ...
  • Be integral to your process. ...
  • Be part of decision making. ...
  • Explicitly address uncertainty. ...
  • Be systematic, structured and timely. ...
  • Be based on the best available information. ...
  • Be tailored.

How is risk calculated? ›

Calculate the risk of attack: Risk = consequences × likelihood.

How do you categorize a risk level? ›

Low/Medium: Risk events that can impact on a small scale are rated as low/medium risk. Medium: An event resulting in risks that can cause an impact but not a serious one is rated as medium. Medium/High: Severe events can cause a loss of business, but the effects are below a risk rated as high.

What level of risk is Priority 4? ›

Risk Priority Number (RPN)
Severity of event (S)RankingProbability of event (P)
High7
Moderate6Moderate: Occasional events
Low5
Very low4
6 more rows

What is acceptable risk level? ›

Definitions. Acceptable risk: That risk for which the probabil- ity of a hazard-related incident or exposure occur- ring and the severity of harm or damage that may result are as low as reasonably practicable (ALARP) and tolerable in the setting being con- sidered.

What are the 2 main types of risk? ›

The two major types of risk are systematic risk and unsystematic risk. Systematic risk impacts everything. It is the general, broad risk assumed when investing. Unsystematic risk is more specific to a company, industry, or sector.

How is risk matrix made? ›

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.

Is matrix software free? ›

Matrix Calculator is a regular, free software only available for Windows, being part of the category Science & education software.

How do you organize a matrix in Excel? ›

You can instantly reorder your data by sorting the table or matrix on any of its columns (except image columns).
...
In the table or matrix you want to sort, click Edit Report in the upper left of the report area.
  1. In the table or matrix, click the column headings you want to sort. ...
  2. Click the arrow to reverse the sort order.

What are 3 ways to measure risk? ›

Some common measurements of risk include standard deviation, Sharpe ratio, beta, value at risk (VaR), conditional value at risk (CVaR), and R-squared.

How do you calculate 2% risk? ›

Using the 2% Rule with a Stop Loss Order

Suppose that a trader has a $50,000 trading account and wants to trade Apple, Inc. (AAPL). Using the 2% rule, the trader can risk $1,000 of capital ($50,000 x 0.02%). If AAPL is trading at $170 and the trader wants to use a $15 stop loss, they can buy 67 shares ($1,000 / $15).

What are the 7 risk management processes? ›

The 7 steps below provide a good framework for effectively managing project risk.
  • Step 1- Outlining Objectives. ...
  • Step 2 – Risk Management Plan. ...
  • Step 3 – Identification. ...
  • Step 4 – Evaluation. ...
  • Step 5 – Planning. ...
  • Step 6 – Management. ...
  • Step 7 – Feedback.
10 Jul 2017

What is a full risk matrix? ›

A risk matrix is a tool that can help you understand the risks your organisation faces, and their overall likelihood and severity, in a visual way.

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