MANAGEMENT

Detailed explanation-1: -The risk assessment matrix works by presenting various risks as a chart, color-coded by severity: high risks in red, moderate risks in yellow, and low risks in green.

Detailed explanation-2: -The Risk Matrix (Of course, if you decide to use six levels for impact and likelihood, you would use a 6 x 6 matrix, and so on.) The risk matrix is normally divided into red, yellow, and green zones, representing major, moderate, and minor risks, respectively.

Detailed explanation-3: -Widely, risks can be classified into three types: Business Risk, Non-Business Risk, and Financial Risk. Business Risk: These types of risks are taken by business enterprises themselves in order to maximize shareholder value and profits.

Detailed explanation-4: -While many individuals are involved in the process and many factors come into play, performing an effective risk assessment comes down to three core elements: risk identification, risk analysis and risk evaluation.