Risk and How to use a Risk Matrix
Summary
TLDRThe video explains the concept of risk as the combination of the likelihood of exposure to a hazard and the severity of the outcome. It provides examples of assessing risk in various road crossing scenarios with bikes or trucks. A key tool introduced is the risk matrix which plots likelihood against consequence to categorize risk as low, medium or high. Risk matrices allow visualization of risk levels based on categorized measures of likelihood and consequence. Despite limitations, they offer a practical way to consistently rate risks in context.
Takeaways
- 😲 Risk can be thought of as the product of likelihood of exposure to a hazard and the consequence/severity of the outcome
- 📊 Risk matrices allow visual representation of risk using likelihood and consequence
- 🟢 Low likelihood + Low consequence = Low risk
- 🟡 High likelihood + Low consequence = Medium risk
- 🟡 Low likelihood + High consequence = Medium risk
- 🔴 High likelihood + High consequence = High risk
- 📈 Risk matrices help categorize different risk levels and make decisions
- 🤔 Risk perception can vary between people and contexts
- ❗Risk matrices have limitations like subjectivity and inconsistent interpretation
- 🟠 They are still a practical tool for risk assessment with some caveats
Q & A
What are two key components that make up risk?
-The two key components that make up risk are likelihood, which is how likely someone is to be exposed to a hazard, and consequence, which is how severe the outcome will be.
How can you visualize and categorize levels of risk?
-You can use a risk matrix, which is a table with likelihood on one axis and consequence on the other, to visualize and categorize levels of risk as low, medium or high.
What were the likelihood and consequence when there was an infrequent number of bicycles on the road?
-When there was an infrequent number of bicycles, around one every 5 minutes, the likelihood of a crash was low and the consequence was also low. Therefore the overall risk was low.
What were the likelihood and consequence when there were trucks instead of bicycles, at the same frequency?
-Even with trucks only coming by every 5 minutes, so a low likelihood of a crash, the consequence if there was a crash would be high. Therefore, the overall risk was medium.
Why wouldn't you consider crossing the road if it was a busy truck route?
-If it was a busy truck route, that means trucks would be going by very frequently. So both the likelihood of getting hit and the consequences if you did would be high. This puts the overall risk level in the high category.
How might categories in a risk matrix be defined?
-For likelihood, high could mean an event is expected to happen often, while low means very rarely, such as once per 100 years. For consequence, high may involve multiple deaths while low means only minor injuries.
What are some limitations of using a risk matrix?
-Limitations include being subjective or open to interpretation, not accounting for different time frames, and that people may not interpret the categories consistently.
Why is risk assessment important in certain situations?
-Risk assessment enables appropriate actions to be taken in situations involving potential hazards, such as with new viruses, industrial accidents, or natural disasters.
What everyday risks does the passage mention people face?
-Everyday risks mentioned include those from air pollution, foodborne illness, and vehicle crashes/accidents.
What does the passage say is a simple way to figure out overall risk?
-The passage states that a simple way to figure out overall risk is by using a risk matrix, which combines assessments of likelihood and consequence.
Outlines
😀 What is risk and how to use a risk matrix
This paragraph defines risk as the product of likelihood of exposure to a hazard and the consequence or severity of the outcome. It gives examples of risks in daily life like breathing polluted air or eating contaminated food. It introduces risk matrices as tools to visualize and categorize risk using likelihood and consequence.
😊 Example scenarios of assessing risk with a matrix
This paragraph provides examples of using a risk matrix to assess the risk of crossing a road with bicycle or truck traffic. It shows how the combination of likelihood and consequence determines if risk is low, medium or high. More frequent trucks raise likelihood and worse potential injuries raise consequence, increasing overall risk.
Mindmap
Keywords
💡risk
💡hazard
💡consequence
💡likelihood
💡risk matrix
💡bicycle
💡truck
💡subjective
💡time frames
💡context
Highlights
Risk can be thought of as the product of how likely someone is to be exposed to something bad and the consequence of the outcome.
A risk matrix combines information about consequence and likelihood to determine the overall level of risk.
In a risk matrix, likelihood is on one axis and consequence severity on the other axis, with overall risk categorized as low, medium or high.
The combination of likelihood and consequence determines where something falls on the risk matrix to indicate the overall risk level.
Bikes crashing rarely with minor injuries represents low likelihood and consequence, so low overall risk.
Frequent trucks crashing with major injuries represents high likelihood and consequence, so high overall risk.
Risk matrices allow visualization and categorization of risk using likelihood and consequence.
There are many types of risk matrices with varying complexity and definitions of likelihood and consequence.
Risk matrices follow the same principle of combining likelihood and consequence to determine overall risk.
Risk matrices have limitations like subjectivity, inconsistent interpretation, and not considering time frames.
Despite limitations, risk matrices are a practical tool for risk assessment and categorization.
Every day we face constant risks, from small chances to major threats.
Assessing risk helps guide appropriate actions for uncertain events and impacts.
Risk perception depends on individual perspectives and situational contexts.
Life involves balancing risks and rewards in nearly every decision we make.
Transcripts
[Music]
hello and welcome to this video on risk
we're going to have a look at what risk
is and take a look at how to use a risk
matrix first of all what is risk now if
you think about it life is full of risks
from the time we wake up to the time we
go to sleep and even in between for
example there are risks associated with
breathing did you know that air
pollution causes about 7 million deaths
each year there are risks associated
with eating foodborne illness causes
about 420 thousand deaths each year and
then there's traveling road accidents
caused over 3,000 deaths each day in
fact every day we have to make constant
decisions about the risks we face now
there are situations in which we need to
know what the risk is from certain
events so that appropriate action can be
taken for example what's the risk to
health from a new influenza virus an
industrial chemical accident or a
bushfire
but first what exactly is risk risk can
mean different things to different
people and in different contexts but in
very simple terms risk can be thought of
as the product of how likely someone is
to be exposed to something bad a hazard
and the consequence which is how bad the
outcome will be let's have a look at an
example say you have to cross a road and
you're trying to figure out what the
risk associated with this is let's take
a look at some different scenarios in
the first scenario our hazard is a
bicycle let's assume there are only
bicycles allowed on this road let's also
assume that the road is not that busy
and there's only one bicycle every 5
minutes on that road now because
bicycles don't go on that road very
often the likelihood of the bicycle
crashing into you is low right if the
bicycle does crash into you the
consequence of that would be relatively
low wouldn't it so in this scenario the
likelihood and the consequence are both
low therefore the overall risk is low
now obviously
if there are bicycles traveling more
frequently the likelihood of a crash
would be higher but the consequence if a
bicycle did crash into you would still
be low but what if things were different
let's change that bicycle to a truck now
with the truck passing every five
minutes the likelihood of a crash would
still be low however the consequence is
far more severe now imagine if it was a
busy truck route and trucks were going
on this road very frequently in this
scenario both the likelihood of a crash
and the consequence will be high which
means that the overall risk would be
high you wouldn't even consider crossing
this road right a simple way of
visualizing this and figuring out the
overall level of risk is by using a risk
matrix in a risk matrix information
about consequence and likelihood can be
used to determine the overall level of
risk let's have a look at a simple risk
matrix a risk matrix is basically a
table or grid with a measure of
likelihood on one side and consequence
on the other graded from low to high the
combination of the two which is the
overall level of risk can be categorized
as low medium or high and color-coded so
let's get back to our example in the
scenario in which there are bikes
traveling very infrequently the
likelihood is low and the consequence is
low therefore the overall risk is low
when there are more bikes the likelihood
is high but the consequence is still low
and therefore the overall risk is medium
let's consider the truck now in the
scenario where trucks are infrequent the
likelihood of a crash is low but the
consequence is high the overall risk is
medium and if it's a busy truck route
the likelihood and consequence are both
high and therefore the overall risk is
high so that's how a risk matrix can be
used to determine the overall level of
risk using an assessment of likelihood
and consequence
there are many different types of
matrices in use with varying degrees of
complexity they can have many categories
and different grades of risk they may
also have different ways of defining
categories of likelihood and consequence
for example a high likelihood may mean
that it's expected to occur in most
circumstances and a low likelihood may
mean that it may occur only very rarely
such as once in 100 years with
consequence a high consequence may mean
multiple deaths and a low consequence
may mean only minor injuries so the risk
matrix and the categories that are used
can vary and therefore should be
relevant to the situation in context in
which the risk assessment is done
regardless of this risk matrices follow
the same principle although risk
matrices have their limitations such as
being subjective not being consistently
interpreted and not taking time frames
into consideration they are a useful and
practical tool to categorize risk and
that's an introduction to risk and how
to use and interpret a risk matrix
Ver Más Videos Relacionados
Risk Matrix
The difference between a hazard and a risk
ISTQB FOUNDATION 4.0 | Tutorial 50 | Risk Identification | Risk Assessment | CTFL Tutorials
Disaster Readiness and Risk Reduction (Introduction) #grade12 #deped #seniorhigh #shs #disaster
Proses Manajemen Risiko ISO 31000: Penetapan Ruang Lingkup, Konteks, dan Kriteria
CompTIA Security+ SY0-701 Course - 5.2 Explain Elements of the Risk Management Process - PART A
5.0 / 5 (0 votes)