How to Use a Risk Matrix Calculator

Assessing hazards in the workplace is an essential way to avoid risk and promote employee health and safety. Safety professionals often utilize a risk matrix calculator to assess the various risks of hazards and the potential incidents that could follow. But what is a risk matrix calculator? And how will it serve as a beneficial tool for your organization? In this blog we’ll explain how to calculate risk matrix, identify key components, and explore multiple benefits. We’ll also provide tips and resources for utilizing this tool in your own organization.

What is a Risk Matrix Calculator?

A risk matrix calculator is a tool used to assess and prioritize risks within a workplace. It simplifies risk management by visually representing the severity and likelihood of potential hazards in a matrix format.

This tool helps organizations evaluate which risks require immediate attention, mitigation, or monitoring. By organizing risks into categories like “low,” “medium,” or “high,” a risk matrix calculator allows decision-makers to allocate resources efficiently and develop strategies to minimize potential harm or disruption.

This calculator enables teams to quantify risks, fostering a proactive approach to problem-solving, and ensuring that no critical threat is overlooked.

How to Calculate Risk Matrix

Calculating a risk matrix involves a systematic approach to evaluate and categorize risks based on two primary factors: likelihood and severity. The steps include:

1. Identify Hazards. List all potential risks or hazards that could impact your project, operation, or workplace.
2. Evaluate Likelihood. Assign a score to the likelihood of each hazard occurring. This is often rated on a scale such as 1 to 5, where 1 is rare and 5 is almost certain.
3. Assess Severity. Determine the impact of each hazard if it were to occur. Severity is also rated on a scale.
4. Plot on the Risk Matrix. Place each hazard on the matrix by combining its likelihood and severity scores. For example, a risk with a likelihood of 4 and a severity of 5 would fall into the “high-risk” category.
5. Analyze Results. Review the matrix to identify high-priority risks requiring immediate action. Low-priority risks may only require monitoring.
6. Implement Controls. Develop and implement strategies to mitigate or eliminate the identified risks.

Using a Risk Matrix Calculator automates this process, offering quick insights and actionable results, which saves time and enhances the accuracy of risk management efforts.

Benefits of Using a Risk Matrix Calculator

Understanding the components of a risk matrix will allow your organization to:

• Manage hazards more effectively. This is done by uncovering “hidden risks” embedded in day-to-day tasks.
• Reduce costly workplace illnesses and injuries. When hazards are identified and handled before they develop into bigger issues, organizations see major cost decreases.
• Increase productivity. Some hazards and incidents can grind operations to a halt, resulting in lost time. Using a risk matrix calculator makes up for lost time, resulting in increased productivity.
• Make more informed decisions. By using quantitative risk data, you can make smarter decisions for your workforce rather than relying on guesswork.
• Boost your reputation. By demonstrating a commitment to safe and responsible operations, it becomes easier to attract and retain employees.

Components of a Risk Matrix

The risk matrix works by presenting various risks in a color-coded chart. On this chart, high risks are represented in red, moderate risks in orange or yellow, and low risks in green.

Risk matrices can come in many shapes and sizes, but every matrix has two axes:

1. One that measures the likelihood of a risk.
2. One that measures the risk’s potential impact on operations.

Using a risk matrix allows you to identify and focus your attention and resources on the highest risks, since these have the biggest impact and can result in significant losses.

Components of a Risk Matrix: Severity

Severity is the first axis of a risk assessment, and it measures the amount of damage or harm a hazard could create. Severity is often ranked on a four-point scale within a risk matrix.

The severity ranking goes as follows:

1. Negligible. Operating conditions are such that hazards will result in either no illness, injury, or system damage, or less than minor.
2. Marginal. Operating conditions may commonly cause minor injury or illness or minor systems damage without severe injury, illness, or major system damage.
3. Critical. Operating conditions are such that hazards may commonly cause severe injury or illness or major system damage thereby requiring immediate corrective action.
4. Catastrophic. Operating conditions are such that hazards may commonly cause death or major system loss, thereby requiring immediate cessation of the unsafe activity or operation.

Components of a Risk Matrix: Probability

Probability is the second axis of a risk matrix, and it measures the likelihood of the hazard occurring. Probability is often tanked on a five-point scale, with the least probable hazards assigned one point and the most probable hazards assigned five points.

The scale goes as follows:

1. Improbable: So unlikely, it can be assumed an occurrence may not be experienced.
2. Remote: Unlikely, but possible to occur in the life of an item.
3. Occasional: Likely to occur sometime in the life of an item.
4. Probable: Will occur several times in the life of an item.
5. Frequent: Likely to occur often in the life of an item.

How to Use the Safety Risk Assessment Matrix

A safety risk assessment matrix provides a clear framework for identifying, evaluating, and mitigating risks in the workplace. In this section we’ll provide a step-by-step guide to help you effectively calculate and reduce hazards.

Step 1: Calculate the Initial Risk Level

The first step in using the matrix is to calculate the initial risk level by multiplying the Probability value by the Severity value.

• Example: A worker lifts heavy castings from a box on the floor and carries them to a grinding wheel, processing 20-30 castings per hour. Identified risks include the possibility of dropping the item on their foot or straining their lower back due to repetitive lifting and twisting.

Step 2: Assign a Probability Value

Next, evaluate how likely the hazard is to occur and assign a probability value based on the risk matrix scale.

• Example: You determine that the likelihood of the worker dropping the item is “Occasional,” corresponding to 3 points on the matrix.

Step 3: Determine the Severity Value

Once the probability is set, consider the potential consequences if the hazard occurs and assign a severity value.

• Example: If the worker strains a muscle or breaks a bone, they might miss shifts or be placed on restricted duty, impacting productivity. This is considered “Critical,” which corresponds to 3 points on the matrix.

Step 4: Calculate the Overall Risk Score

Using the assigned values, multiply the Probability and Severity scores to find the overall risk level.

• Example: 3 x 3 = 9
• With a score of 9, the risk is categorized as “Severe,” often represented in red on the matrix.

Step 5: Implement Controls to Reduce Risk

Once you understand the risk, develop and implement strategies to reduce its likelihood or impact.

Example controls include:

• Moving the boxes closer to the grinding wheel to minimize carrying distances.
• Equipping workers with steel-toed boots to protect against dropped items.

Step 6: Reassess the Residual Risk

After implementing controls, reassess the risk using the same process to account for the new safety measures.

• Example: While the severity remains “Critical” (3 points) since the potential injury has not changed, the likelihood decreases to “Remote,” corresponding to 2 points.

Step 7: Evaluate the Residual Risk Level

Recalculate the risk score based on the updated probability and severity values.

• Example: 3 x 2 = 6
• A score of 6 shifts the hazard to the “Medium” category, represented in yellow on the matrix.

Step 8: Decide Next Steps

Finally, determine if the residual risk level is acceptable. If it is not, consider implementing additional controls or redesigning the task to further reduce the risk.

• Example: To lower the risk even further, you might explore using a lift-assist device or adjusting task protocols for improved ergonomics.
  By following these steps, you can systematically identify, evaluate, and manage risks, ensuring a safer workplace for everyone involved.

Best Practices for Using a Risk Matrix Calculator

Using a Risk Matrix Calculator effectively requires a strategic approach to ensure accurate assessments and improved workplace safety.

Best practices when using this tool include:

• Regularly reviewing and updating your risk matrix. Your organization’s risks may change over time, so you should periodically review and determine whether you need to revise your risk matrix to better account for a changing risk landscape.
• Monitoring operations. EHS managers should monitor day-to-day operations to confirm that safety protocols and control measures are being followed and that risks have been mitigated to an appropriate level.
• Investigating incidents. Organizations should investigate incidents to determine their root causes and develop strategies to prevent similar incidents from occurring in the future. Root cause analysis can help you to uncover whether the controls that you’ve implemented to mitigate a hazard are falling short and need to be adjusted.

How Vector Solutions Helps with Risk Matrix

Risk management technology can save EHS professionals valuable time and resources. Risks pose real-time threats, and you must be able to make informed decisions to mitigate them quickly. Trying to manage assessments using paper and spreadsheets can be unwieldy and time-consuming.

At Vector Solutions, our EHS Management software saves organizations valuable time and effort in recording, tracking, and analyzing operational risks.

This software allows you to continually update and easily modify your risk matrix to meet your specific operational needs. By using a web-based matrix and assessment tool, it also becomes easier to share risk assessments and communicate hazard information across your organization’s locations.

Request a demo and learn more.