Risk control matrix template

The risk rating is calculated by combining the likelihood and impact assessments. First, evaluate how likely the risk is to occur (from rare to almost certain) and its potential impact (from insignificant to catastrophic). The combination of these two factors determines your risk rating. Focus on using consistent criteria across all risks to ensure meaningful comparisons and prioritization within your organization.

Your risk description should clearly articulate what could go wrong, the potential causes, and possible consequences. Be specific about how the risk relates to your business processes or objectives. Avoid vague statements like “IT failure” and instead describe precisely what might happen, such as “Unauthorized access to customer payment data due to outdated security protocols leading to data breach.”

Evaluate control effectiveness by assessing whether it addresses the risk’s root cause, has been properly implemented, and has a proven track record. A highly effective control prevents the risk entirely or significantly reduces both likelihood and impact. Partially effective controls may address only certain aspects of the risk or require additional measures. Ineffective controls fail to meaningfully reduce the risk exposure.