The Risk Value Matrix provides a method of organizing opportunities based on the end value of each and the risk involved. By carefully determining which risks are worth taking and which are not, the matrix user can save himself money, time, and effort that may have been lost by making the wrong decisions.
RISK VALUE MATRIX INFO
- HIGH VALUE; LOW RISK
Contains the actions that will be highly beneficial and involve only small risk.
- HIGH VALUE; HIGH RISK
Contains the actions that will be highly beneficial but involve big risk.
- LOW VALUE; LOW RISK
Contains the actions that will not be very beneficial but involve only small risk.
- LOW VALUE; HIGH RISK
Contains the actions that will not be very beneficial and involve high risk.
RISK VALUE MATRIX TEMPLATE
Have you ever become overwhelmed with opportunities which you aren’t certain whether or not you should pursue? In many areas of life, especially business management, this can often be the case. In times like these, it is absolutely necessary to find a method for determining which actions should be taken and which should be rejected. It may seem like one should always take an opportunity, but the truth is that some may involve far too many risks- more than it is worth!
The Risk Value Matrix assesses each action, keeping in mind the value of that action and the risks involved if it were to be chosen. Its use is simple!
- Actions that are of a high value and involve low risk should always be chosen.
- Actions that are of a high value and involve high risk and actions should be analyzed to determine whether or not they should be chosen. These may be worth your time, but they may also be dangerous.
- Actions that are of a low value and involve low risk are everyday tasks. These are neither extremely beneficial or dangerous.
- Actions that are of a low value and involve high risk should never be chosen. These are too dangerous and not worth your time.
RISK VALUE MATRIX IN PRIORITY MATRIX
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