A risk matrix is a simple tool used to assess and prioritize risks in various situations, such as projects or business operations. It typically consists of a grid that helps visualize the likelihood of a risk occurring against its potential impact. By categorizing risks into different levels, teams can easily identify which risks need immediate attention and which can be monitored over time. In a risk matrix, the horizontal axis usually represents the probability of a risk happening, while the vertical axis shows the severity of its consequences. This visual representation allows organizations to make informed decisions about resource allocation and risk management strategies, ensuring that they focus on the most critical issues first.