A risk matrix is another form of a heat map and is commonly used to map the likelihood of an event occurring and the impact of that event. Therefore a risk matrix maps the probability and the consequences of a risk event crystallising. The greater the likelihood and the greater the consequence, the more severe or concerning the risk becomes. If the likelihood of a risk event occurring was very low and the impact was also very low, the overall result if the event crystallised is 'insignificant'. However if the likelihood and impact were both very high, should the risk event occur it may be described as catastrophic.
Does the AML360 risk assessment provide a risk matrix?
The AML360 assessment provides your business a risk matrix. This allows you to map the score of your overall risk profile, as well as the score of each key risk division to the severity level of the risk.