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AI PROJECT RISK ASSESSMENT MATRIX
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How to Use This Matrix:
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1. Assess LIKELIHOOD (1-5): How probable is this risk?
2. Assess IMPACT (1-5): How severe are the consequences?
3. Find intersection in matrix below to determine RISK LEVEL
4. Use color coding to prioritize: Red = Critical, Orange = High, Yellow = Medium, Green = Low
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RISK LEVEL MATRIX
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IMPACT →
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L
I
K
E
L
I
H
O
O
D

↓		1
Negligible		2
Minor		3
Moderate		4
Major		5
Severe
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5
Almost
Certain		MHHCC
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4
Likely		MMHHC
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3
Possible		LMMHH
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2
Unlikely		LLMMH
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1
Rare		LLLMM
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LEGEND
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C = CRITICAL
Immediate action required. May block deployment. Weekly monitoring.
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H = HIGH
Urgent attention needed. Escalate to leadership. Bi-weekly monitoring.
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M = MEDIUM
Manage with defined controls. Monthly monitoring.
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L = LOW
Accept with basic monitoring. Quarterly review.
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EXAMPLE CALCULATION
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Example: Model accuracy falls below threshold
• LIKELIHOOD = 3 (Possible - 30-50% probability based on similar projects)
• IMPACT = 4 (Major - would cause 3-6 month delays, require executive escalation)
• Find intersection: Row 3 (Likelihood 3) × Column 4 (Impact 4) = HIGH (H)
• Action: Urgent attention needed, escalate to leadership, bi-weekly monitoring
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