Qualitative risk analysis matrix template

An extreme risk typically combines very high likelihood with major/catastrophic impact. These risks threaten fundamental project objectives and require immediate attention. High risks are serious but slightly less urgent. Consider your organization’s risk tolerance when setting these thresholds. The classification should reflect the level of response required—extreme risks often need executive involvement and dedicated resources.

Break down each response strategy into specific activities. Consult with team members who would implement these activities for time/resource estimates. Include both direct costs and opportunity costs of diverted resources. Your estimates don’t need to be precise—they should be accurate enough to help prioritize responses and ensure you have sufficient contingency reserves.

Clearly define their responsibilities—monitoring triggers, implementing responses, and reporting status. Include contact information and backup personnel for critical risks. Effective ownership ensures accountability and prevents risks from falling through the cracks when quick action is needed.