A risk assessment matrix, also known as a Probability and Severity or Likelihood and Impact risk matrix, is a visual tool depicting potential risks affecting a business. The risk matrix is based on two intersecting factors: the likelihood the risk event will occur and the potential impact the risk event will have. In other words, it$$s a tool that helps you visualize the probability versus the severity of a potential risk.

Depending on likelihood and severity, risks can be categorized as high, moderate, or low. As part of the risk management process, companies use risk matrices to help them prioritize different risks and develop an appropriate mitigation strategy. Risk matrices work on large and small scales; this system of risk prioritization can be applied at the discrete project level, or at the enterprise level. paraphrase it