Risk Assessment Builder

Identify, analyze, and mitigate risks with our comprehensive assessment tool.

Add New Risk

Current Risk Score
9Medium

Initial Assessment

Moderate
Possible
Residual Risk Score
1Low

Residual Assessment (Post-Mitigation)

Negligible
Rare

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Understanding Risk Assessment

What is Risk Assessment?

Risk assessment is the systematic process of identifying, analyzing, and evaluating potential risks that could negatively impact a project, organization, or initiative. It's not about eliminating all risk—that's impossible—but about understanding which risks matter most and deciding how to respond. Effective risk management transforms uncertainty from a threat into something you can proactively address.

The Risk Matrix Explained

Risks are evaluated on two dimensions:

Likelihood (Probability)

How likely is this risk to occur? Ranges from rare/unlikely to almost certain. Consider historical data and expert judgment.

Impact (Severity)

If it happens, how bad would it be? Consider financial, schedule, reputation, safety, and strategic impacts.

Risk Score = Likelihood × Impact. High-likelihood, high-impact risks demand immediate attention. Low-likelihood, low-impact risks may simply be accepted.

The Four Risk Response Strategies

Avoid

Eliminate the threat entirely by changing plans. May mean not pursuing a particular option.

Transfer

Shift the risk to a third party. Insurance, contracts, and outsourcing are common transfer mechanisms.

Mitigate

Reduce likelihood and/or impact. The most common response—take proactive steps to minimize the risk.

Accept

Acknowledge the risk and move forward. May be passive (do nothing) or active (contingency plan ready).

How to Use This Tool

  1. Identify risks: Brainstorm what could go wrong. Use categories: technical, resource, schedule, external, organizational.
  2. Describe each risk: Be specific. "Key developer might leave" is better than "people risk."
  3. Assess likelihood and impact: Score each dimension. Be consistent in your scale definitions.
  4. Define responses: For high-priority risks, document how you'll respond. Assign owners.
  5. Review regularly: Risks change. Revisit your register weekly or monthly to update status and identify new risks.

💡 Risk Isn't Always Negative

Positive risks—opportunities—exist too. What if a competitor exits the market? What if your product goes viral? The same framework applies: identify opportunities, assess likelihood and impact, and plan how to exploit or enhance them. Good risk management looks both ways.