A Risk Map is a visual diagram presenting the criticality of our risks and uncertainties.

Likelihoods and Impacts need to be combined in order to produce an overall Risk Priority. This is where the Risk Map can be very useful.

A Risk Map is a graph consisting of Risk Likelihoods on the x-axis and Risk Impacts on the y-axis. Risks can then be plotted to determine their overall criticality and prioritised to help decide where to start with the Risk Treatment process.

The example below shows a Risk Map for a 10 Point Classification Scale.

Note: The scales will change with the point classification used, but the principle is just the same.

The closer that risks are placed towards ‘critical’ at the top right of our risk map, the urgency for their treatment increases. The completed risk map should help us to decide which risks need to be addressed or ignored due to its analysis.

The Risk Appetite determines the level of risk that the organisation is willing to accept in order to achieve their objectives. Some risks may not be worth allocating time and resources to manage and it is our risk appetite that determines this level. All those risks placed below the risk appetite line will be accepted.