The Risk Reporting Matrix is used to determine the level of risks identified within a program. The level of risk for each root cause is reported as low (green), moderate (yellow), or high (red). There are three (3) steps associated with the Risk Reporting Matrix that are: [1]

Step One
Determine the level of likelihood of a risk occurring by using established criteria.  These criteria should be detailed in the Risk Management Plan. Example criteria are below. [1]

Level Likelihood Probability of Occurrence
1 Not Likely 10%
2 Low Likely 30%
3 Likely 50%
4 High Likely 70%
5 Near Certain 90%

Step Two
Determine the level and types of consequences of each risk using established criteria; Risk Confidence & Probability. These criteria should be detailed in the Risk Management Plan.  Example criteria are below. [1]

Level Technical Performance Schedule Cost
1 Minimal or no consequence to technical performance Minimal or no impact Minimal or no impact
2 Minor reduction in technical performance or Supportability, can be tolerated with little or no impact on program Able to meet key dates.
Slip < * month(s)
Budget increase or
unit production cost
increases.
< ** (1% of
3 Moderate reduction in technical performance or
supportability with limited impact on program objectives
Minor schedule slip. Able to meet key milestones with no schedule float.
Slip < * month(s)
Sub-system slip > *
month(s) plus available
Budget increase or
unit production cost
increase
< ** (5% of
Budget)
4 Significant degradation in technical performance or major shortfall in supportability; may jeopardize program success Program critical path
affected.
Slip < * months
Budget increase or
unit production cost
increase
< ** (10% of
Budget)
5 Severe degradation in technical performance; Cannot meet KPP or key technical/supportability threshold; will jeopardize program success Cannot meet key program milestones.
Slip > * months
Exceeds APB
threshold
> ** (10% of
Budget)

Step Three
Plot the results for each risk in the corresponding single square (as pointed to by the arrow) on the Risk Reporting Matrix. [1]

Risk Matrix Plot

AcqLinks and References:

Updated: 7/29/2017

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