1. List Potential Risks: Brainstorm and list all possible risks that could affect your business. 2. Assess Likelihood: Evaluate the probability of each risk occurring, usually on a scale from 1 (low) to 5 (high). 3. Assess Impact: Determine the potential impact of each risk, also on a scale from 1 (low) to 5 (high). 4. Plot on the Matrix: Place each risk on the matrix based on its likelihood and impact scores.