What is the risk matrix?

The risk matrix is a visual display of the risk score. The impact of a risk is plotted on the vertical axis, while the probability of a risk is plotted on the horizontal axis of the matrix. The risk score is calculated by multiplying the impact and the probability, which will result in a score between 1 and 100. The lower the risk score of a certain risk, the less severe the incident will be when it occurs. 

The matrix can be divided into four quadrants, namely avoid, transfer, reduce and accept. These quadrants are an indication for the advice about how to manage a certain risk according to the risk score. If a risk has a high impact and a low probability it will be placed in the quadrant "transfer". Which indicates that the risk should be transferred to, for example, an insurer. 

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