A way to assess risk
is by defining a risk management matrix,
which basically focuses on two different aspects:
the severity defined as the impact
and the negative consequences from an event
and its probability or likelihood to happen.
To place a risk in the risk management matrix,
we have to assign a rating to the severity
and to the probability.
And then, we can proceed to plot it
in a position from the chart.
We then classify the events
based on their severity in five different levels.
First, we will find the trivial events
or the insignificant ones, those risks
that won't bring any negative consequences
and also won't pose a threat
to the system or facility.
After that, we will see the minor risks,
or risk that could pose a small potential risk
or negative consequences.
Those risks
will not challenge the success of the facility either.
Then we will scale up to "moderate".
Here we assume that all the different risks
that could potential
or potentially produce negative consequences,
and that pose a moderate treat to our facility.
Then we can go to the next step or classification
that are the major risks,
which can also be defined as critical
and include all those risks
that can bring negative consequences
and could also pose a serious impact to the success
or integrity of the process.
And finally, we have the "extreme"
which bring, as its name indicates,
extreme negative consequences
and which could challenge the whole project
because they can cause a severe damage to the facilities.
So looking at that, we can divide from low to high zones.
Like here.
We can find that the low areas of the chart
include all those risks that have little impact
and/or are unlikely to happen.
And they are on the top left part of the chart.
They do not imply a challenge
to the facility or the organization.
If we continue,
we also have the medium zone,
or "as-low-as-reasonably-possible."
And here we include all the challenges
that are based
on their severity and probability,
and that are considered tolerable
or that would not significantly
pose or produce damages.
And finally, we have the high area of the chart.
And here we can include
all those events
that could threaten the project
or the organization,
and if they happen, they must be addressed immediately.