Resilience in Focus: Rethinking the Risk Matrix

Abstract

This research presents a three-dimensional risk matrix model designed for the analysis and prioritisation of critical risks in the context of resilience. Traditional risk assessment methods prevalent in information security, which typically juxtapose the likelihood and consequences of risks, are inadequate for fully capturing the intricacies of critical risks. The proposed three-dimensional model addresses these shortcomings by cohesively integrating the dimensions of likelihood, impact and cost of risk management. This integration provides a holistic tool for resilient risk analysis that goes beyond the capabilities of traditional models. A key feature of this model is its ability to address the complexities associated with critical risks, which are often not adequately addressed by traditional risk matrices due to their stochastic nature and significant potential impact on organisational resilience. By incorporating budgetary constraints into the risk assessment process, the model enables a more objective and quantifiable approach to managing critical risks. It shifts the evaluative focus from a purely probabilistic perspective to a cost-value based assessment, emphasising the balance between potential benefits and mitigation expenditure. This approach not only refines the accuracy of critical risk assessment, but also enhances existing risk management practices, providing a more robust and strategic tool for managing organisational risk.