Risk Assessment Matrix: What Is It + How to Create It

Imagine this: You’re in your weekly team sync. Someone flags a possible vendor breach. A few minutes later, the conversation shifts to a product misconfiguration that might expose customer data. Then there’s a mention of a delayed compliance audit because someone missed a control update.

These things come up often. Each one feels serious in the moment—some probably are. Others, less so. But how do you tell which is which? How do you balance urgency with importance? 
This is what GRC teams run into all the time: different people raising different concerns, all sounding critical, but with no clear way to weigh them side by side. That’s where the risk assessment matrix helps. And in this article, you’ll learn what it is and how to create it. Let’s start!

What is a risk assessment matrix?

A risk assessment matrix is a visual tool teams use to weigh risks based on two things—how likely something is to happen and how serious the impact could be if it does. 

Instead of leaving risks scattered across spreadsheets or buried in conversations, the matrix pulls them into a single view so you can see, at a glance, what actually needs your attention.

Picture this: missing a compliance deadline vs. spotting a small bug in the UI of your settings page. 

One could lead to legal issues. 

The other? Probably a support ticket. 

The matrix shows you the difference at a glance.

Depending on the level of detail you need, the matrix itself can vary in size. Common formats include 3×3, 4×4, or 5×5, based on how finely you want to score likelihood and impact.

Benefits of using a risk assessment matrix

A risk assessment matrix gives teams a practical way to compare risks side by side, prioritize what matters most, and assign the right response before small issues become serious problems.

Organizations that use it consistently benefit from:

• Faster resolution of risks during audits, reviews, and assessments
• Improved collaboration between teams with a shared risk language
• Clearer accountability for who owns which risks and follow-up actions
• Stronger compliance posture through consistent risk handling
• Better visibility for leadership into high-priority issues

“We’ve seen teams come into risk reviews with 30-plus items, all listed with equal weight. There’s no clarity on which risks affect timelines, which ones impact compliance, or who’s responsible for what. A risk matrix helps teams focus on the top risks that could delay delivery or trigger audit issues, and make sure each one has a clear owner and deadline.” — Rajiv, ISO Lead Auditor at Sprinto

Key components of a risk assessment matrix

A risk assessment matrix has six parts. Together, they help you score and compare risks in a consistent, structured way.

1. Likelihood scale

This shows how likely a risk is to occur. Most teams use a 1 to 5 scale, where 1 means rare and 5 means almost certain. 

A missed PCI compliance step before a payment system launch might score a 5. It’s a process gap that’s easy to miss and tends to surface under pressure. 

An employee skipping a scheduled password update by a few days might score a 2. It happens, but usually without consequences.

2. Impact scale

Impact measures the consequences if the risk materializes. Most teams score this from 1 to 5, where 1 is minimal and 5 is severe. 

That PCI miss could trigger audit delays, contract issues, or financial penalties—a 5 on impact. 

The password delay? It might slightly increase exposure, but with other controls in place, it’s unlikely to cause damage. That’s a 1.

3. Risk score

This is calculated by multiplying likelihood and impact. 

The PCI issue scores 5 × 5 = 25—a critical risk. 

The delayed password update scores 2 × 1 = 2—low enough to track and move on.

This number helps prioritize which risks demand more attention and which can be tracked with minimal action.

4. Severity zones (color coding)

Color makes the matrix easier to read. Green usually means low risk, yellow signals something worth watching, and red is a clear warning.

A score of 25 would probably fall into red. That’s the kind of thing you’d want to act on fast. 

A 2? That sits in green—something to keep an eye on, but unlikely to cause damage.

The point isn’t to dress up the matrix. It’s to help teams spot the serious stuff quickly without having to dig through every line.

5. Response mapping

Once you’ve placed the risks, it’s time to figure out what to do about them.

Low scores might not need much. Maybe a line in a report or a quick review later. 

Risks in the middle are often the tricky ones. These could need stronger control, or at least a conversation about what’s in place. 

Anything in red usually needs a plan, whether that’s mitigation, escalation, or pulling in more people.

In our example, the delayed password update probably just gets logged and checked later. 

But that missed PCI step could delay a launch or lead to compliance trouble, so it would need attention right away, maybe even a rollback.

How to create and use a risk assessment matrix in your organization?

To build and use a risk assessment matrix, you need to follow a clear, repeatable process that helps you identify risks, score them with consistency, and take the right action based on their severity.

Let’s break it down:

Step 1: List the risks

Start by collecting risks from different parts of the business. 

Look at past audits, vendor assessments, incident logs, access reviews, and even support tickets. 

These often surface patterns that don’t show up in dashboards. 

(Input from department heads can be helpful too.)

If something caused delays, led to a customer complaint, or created friction during an audit, add it to the list.

Step 2: Define scoring criteria

Once you’ve got your list, you’ll need a way to score each risk. 

This is where your team agrees on how to think about likelihood and impact. These become your assessment criteria.

Many teams go with a 1 to 5 scale, but the numbers only matter if they reflect how things actually work in your environment.

For example:

• A 5 on likelihood might mean something shows up every month
• A 1 might be closer to a once-in-five-years scenario
• A 5 on impact could mean downtime, lost revenue, or a failed audit
• A 1 might just mean an internal delay that never leaves the room

The simpler the scale, the easier it is for others to apply it without second-guessing.

Step 3: Score each risk

Now start scoring. Work through your risk list, and for each one, assign a likelihood and an impact rating based on your criteria.

It helps to involve the teams closest to the risk, like compliance, security, engineering, or whoever flagged it. Their input will usually make the scoring more accurate.

Say you’re reviewing a vendor that skipped a security review. If it’s happened before and the vendor handles sensitive data, that could be a 4 for likelihood and a 3 for impact. This would give it a risk score of 12.

Once scored, that number tells you how serious it is and what kind of response it might need.

Step 4: Plot the risks on the matrix

Once each risk is scored, add it to the matrix using the two values—likelihood and impact. 

For example, a risk rated 4 on likelihood and 3 on impact would land at the point where row 4 meets column 3.

You can create this grid in a spreadsheet using conditional formatting and basic color coding to make the severity scale instantly recognizable. Or use any tool that supports a 2D matrix view. 

What matters most is that the matrix stays visible, whether that’s a shared doc, a dashboard, or part of a regular review loop.

When teams start using it regularly, it becomes more than a snapshot. It turns into a live tool that helps evaluate new issues as they arise, not just the ones already on the radar.

Step 5: Assign response strategies

Once the risks are mapped, you’ll need to decide how to respond to each one. 

The score—and where the risk sits in the severity scale—helps guide that call.

• Risks in green zones are usually low priority. They might be logged and reviewed later. 
• Yellow zones often need some kind of control or follow-up. 
• Red means the issue should be addressed right away. That could mean mitigation, escalation, or a broader review.

It’s important to make these decisions clear and assign owners who will follow through. 

That’s what turns the matrix from a diagram into something that drives actual change.

Step 6: Review and revisit regularly

A risk matrix is only useful if it reflects your current environment.

Set a review cadence. Quarterly works well for most teams, but major changes like new vendors, audits, product launches, or incidents should trigger an update sooner.

Loop in relevant stakeholders during these reviews. It keeps the matrix accurate and turns it into a shared, living visual tool.

Bridge the Gap Between Risk Prioritization and Compliance Action With Sprinto

A risk assessment matrix helps you identify and prioritize what could go wrong, like missed controls, insecure vendors, and audit blockers. But spotting those risks is just the start. 

Sprinto helps you manage them in a way that supports your compliance goals. It centralizes risk data, assigns owners, and connects risks to controls across 20+ frameworks like SOC 2, ISO 27001, or HIPAA. 

As your program evolves, Sprinto automatically collects evidence, monitors control performance, and builds a ready-to-go audit trail. You move from reviewing risks on a grid to resolving them in a way that directly supports audit readiness and long-term compliance. Watch the platform in action and kickstart your journey.

Frequently asked questions

Why is the risk assessment matrix important?

Risk assessment matrix is important because it brings structure to how risks are evaluated and compared. It replaces guesswork with a scoring system based on clear, shared criteria. This helps teams align decisions across departments and ensures that high-priority risks receive the right attention.

What are the types of risk assessment matrix?

There are multiple formats of risk assessment matrices, depending on how detailed your scoring needs to be. The most common are 3×3, 4×4, and 5×5 grids. Smaller matrices are quicker to use. A 5×5 matrix offers more precision and works well for complex environments that involve audits, compliance workflows, or cross-functional risk reviews. Some teams even adapt the format further to reflect custom scoring models or weighted criteria.

How does a risk assessment matrix work?

A risk assessment matrix works by helping you score risks based on their likelihood and impact, then plot it on a grid. The grid makes it easy to see which risks are high, medium, or low severity. This visual structure helps teams prioritize and respond appropriately.

How to use a risk assessment matrix?

You can use a risk assessment matrix by first listing out potential risks, then scoring each one based on likelihood and impact. Plot the risks on the matrix to see which ones need attention. Based on where they land, you can choose to accept, monitor, or mitigate the risk—and assign clear owners to follow through.