What is a risk assessment matrix?‍

Effective risk management is essential for workplace safety and regulatory compliance. One of the most valuable tools for this purpose is the risk assessment matrix.

This guide explores the key aspects of a risk assessment matrix, its applications, and its benefits. By the end, you’ll have a clear understanding of how to implement this tool in your organisation to identify, evaluate, and manage potential risks more effectively.

What is a 5x5 risk matrix?

A 5x5 risk matrix is a tool used in risk management to assess and prioritise risks by evaluating their likelihood and impact. It consists of a grid with five levels of probability on one axis and five levels of impact on the other, creating a 25-cell matrix. Each cell in the matrix represents a different level of risk, determined by multiplying the likelihood of an event occurring by the severity of its impact.

Probability (X-axis)

The Probability (X-axis) measures how likely it is that a risk will occur. The 5 levels of probability are:

1. Rare: Highly unlikely to happen.
2. Unlikely: Possible to happen but not common.
3. Moderate: Fair chance of occurring.
4. Likely: High chance of occurring.
5. Almost Certain: Expected to happen.

Impact (Y-axis)

The Impact (Y-axis) measures the potential severity of the risk’s consequences. This axis can also be referred to as severity or consequence. The 5 levels of impact are:

1. Insignificant: No serious injuries or damage.
2. Minor: Minor injuries or slight damage.
3. Significant: Injuries that may require medical attention or notable damage.
4. Major: Serious injuries or substantial damage.
5. Severe: Life-threatening injuries or severe damage.

How to calculate risks using the 5x5 risk matrix

To calculate risks using the 5x5 risk matrix, you use the formula:

Probability x Impact = Risk Level

This formula helps determine the overall risk level by multiplying the likelihood of an event occurring (probability) by the severity of its consequences (impact).

Numeric values of the risk level

The risk level is represented as a numeric value, which helps in categorising the risks into different levels of urgency and required action. Here’s how the numeric values are generally grouped:

• 1-4: Low Risk - Acceptable risk levels with no immediate action needed. Regular monitoring is recommended.
• 5-9: Moderate Risk - Requires attention and potential action to reduce the risk.
• 10-16: High Risk - Significant attention needed. Action plans should be developed and implemented to mitigate the risk.
• 17-25: Critical Risk - Immediate action required. High-priority measures must be taken to manage and mitigate the risk effectively.

How to use a risk assessment matrix

Using a risk assessment matrix involves a structured approach to identifying, evaluating, and mitigating risks. Below is a step-by-step guide, including an example for better clarity.

Step 1: Define the context

Defining the context sets the stage for the risk assessment by specifying what project, process, or activity is being analysed. This includes key details like the project name, analysis date, and location, which help in tracking and referencing the assessment.

Example:

• Project name: Chemical Handling Procedures
• Analysis date: May 1, 2024
• Location: Manufacturing Plant A

This context ensures that all stakeholders understand the scope and focus of the risk assessment.

Step 2: Identify the risks

Identifying potential hazards is crucial as it lays the foundation for the entire risk assessment. Consider various risk sources such as physical, chemical, biological, and operational hazards.

Example:

For the chemical handling procedures in Manufacturing Plant A, potential risks could include:

• Chemical spills
• Exposure to toxic substances
• Fire or explosions
• Equipment malfunctions

Listing these risks helps in systematically analysing each one.

Step 3: Assess probability and impact

Assigning ratings for the probability and impact of each identified risk helps quantify the risks, making them easier to prioritise and manage.

Example:

Assigning ratings for the probability (likelihood) and impact (severity) of each identified risk helps quantify the risks, making them easier to prioritise and manage.

• Risk: Chemical spill
  
  • Probability: Likely (4)
  • Impact: Severe (5)

This step involves assessing the likelihood of the chemical spill occurring and its potential consequences.

Step 4: Calculate the risk level

Calculating the risk level by multiplying the probability and impact ratings provides a clear, numeric representation of the risk. This helps in prioritising which risks need the most attention.

Example:

• Risk level calculations: 4 (Probability) x 5 (Impact) = 20
• Risk level: 20 (Critical risk)

A risk level of 20 indicates a critical risk that requires immediate attention.

Step 5: Implement risk control measures

Developing and implementing control measures is essential for mitigating or eliminating identified risks. These measures can include elimination, substitution, engineering controls, administrative controls, and personal protective equipment (PPE).

To learn more about risk control measures, read our blog on the types and roles of risk control measures in the workplace.

Example:

For the critical risk of a chemical spill:

• Improved Spill Containment: Installing secondary containment systems and using double-walled containers.
• Training and Safety Protocols: Conducting regular training sessions on chemical handling and spill response procedures.
• Emergency Response Plan: Developing a detailed plan that includes spill kits, emergency contact numbers, and evacuation routes.
• Regular Inspections and Maintenance: Conducting frequent checks on storage containers and handling equipment to prevent leaks.

Implementing these measures can significantly reduce the likelihood and impact of a chemical spill.

Step 6: Monitor and Review

Regular monitoring and reviewing the effectiveness of control measures ensure that the risk management process remains dynamic and responsive to changes. Updating the risk assessment periodically is necessary to address new risks or changes in operations.

Example:

• Ongoing Monitoring: Schedule quarterly reviews of chemical handling procedures and update training materials as needed.
• Effectiveness Check: Conduct drills to test the emergency response plan and gather feedback to improve it.

By continuously monitoring and reviewing, the organisation ensures that the control measures are effective and that any new risks are promptly addressed.

What are the benefits of using a risk assessment matrix?

• Simplifies risk evaluation: Provides a clear and concise method to evaluate and prioritise risks.
• Visual representation: Offers an easy-to-understand visual tool for communicating risks to stakeholders.
• Improves resource allocation: Enables better allocation of resources to manage the most critical risks.
• Supports compliance: Assists in meeting regulatory requirements and industry standards.
• Promotes proactive risk assessment: Encourages the identification and mitigation of risks before they become issues.
• Reduces potential losses: Minimises the likelihood and impact of adverse events by enabling timely intervention.

Unlocking the potential of customisable risk matrices

A risk assessment matrix is an invaluable tool for managing workplace risks, providing a structured way to evaluate and prioritise potential hazards. By understanding and utilising this tool, organisations can significantly enhance their ability to identify and mitigate risks, ensuring a safer and more compliant work environment.

With myosh's Risk Hazard Management Module, you can create custom risk matrices tailored to your specific needs. Whether you need to align the matrix with industry standards, project requirements, or unique risk management frameworks, myosh allows for full customisation. You can adjust scoring criteria, add specific risk categories, and modify the matrix to suit your organisation's requirements.

Discover how myosh can elevate your safety management—start your free trial with myosh today.