IDEAS home Printed from https://ideas.repec.org/h/spr/sptchp/978-3-662-60608-7_2.html
   My bibliography  Save this book chapter

Risk Matrices

In: Enterprise Risk Management Models

Author

Listed:
  • David L. Olson

    (University of Nebraska)

  • Desheng Wu

    (University of Chinese Academy of Sciences
    Stockholm University)

Abstract

Risk matrices are a means to consider the risk components of threat severity and probability by assessing risk aspects and their varying degrees of impact. Risk matrices are described in the context of COSO’s risk management framework and process. A number of basic applications are reviewed. Cox and Levine critiques of the use of risk matrices are described, with their suggestions for more accurate quantitative analytic tools. An ideal approach would be to expend such measurement funds only if they enable reducing overall cost. The interesting aspect is that we do not really know. Thus, we would argue that if you have accurate data (and it is usually worth measuring whatever you can), you should get as close to this ideal as you can. Risk matrices provide valuable initial tools when high levels of uncertainty are present. Quantitative risk assessment in the form of indices as demonstrated would be preferred if data to support it is available.

Suggested Citation

  • David L. Olson & Desheng Wu, 2020. "Risk Matrices," Springer Texts in Business and Economics, in: Enterprise Risk Management Models, edition 3, chapter 2, pages 17-31, Springer.
    • Handle: RePEc:spr:sptchp:978-3-662-60608-7_2
    DOI: 10.1007/978-3-662-60608-7_2
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sptchp:978-3-662-60608-7_2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.