Creating a risk assessment matrix involves several steps: 1. Identify Risks: Collaborate with key stakeholders to identify potential risks that could impact the organization. These risks can be internal or external, such as financial uncertainties, operational challenges, or market fluctuations. 2. Evaluate Risks: Assess the likelihood and impact of each identified risk. Use a scale (e.g., 1-5) to quantify both the probability of occurrence and the potential impact on the business. 3. Plot Risks on the Matrix: Plot each risk on the matrix based on its evaluated probability and impact. This visual representation helps prioritize risks, with high-probability/high-impact risks positioned in the top-right quadrant. 4. Develop Mitigation Strategies: For each risk, develop appropriate mitigation strategies. High-priority risks may require immediate action plans, while lower-priority risks can be monitored and addressed if they escalate.