What is typically assessed by a risk assessment matrix in ORM?

A risk assessment matrix in Operational Risk Management is primarily designed to evaluate and prioritize the potential impact of various operational risks on an organization. This matrix allows organizations to systematically assess risks by considering both the likelihood of occurrence and the potential severity of their impact. By plotting risks on the matrix, organizations can visualize which risks pose the most significant threat and require immediate attention or mitigation strategies.

In contrast, the performance of management teams, sales figures, and the quality of customer service, while important to overall business operations, do not directly fall within the scope of a risk assessment matrix. These aspects pertain more to performance metrics and customer satisfaction rather than the evaluation and prioritization of risks associated with operations. The focus of the matrix is exclusively on understanding how identified operational risks could affect the organization's objectives and operations, making the assessment of their potential impact the central function of this tool.