What type of matrix displays risks in red, yellow, and green zones?

The correct answer refers to the Risk Severity matrix, which is specifically designed to visually categorize and represent risks based on their potential impact and likelihood. The use of colors—red, yellow, and green—serves a critical function in risk management.

In this matrix:

• Red typically signifies high severity or critical risk, indicating that immediate attention and action are required.
• Yellow represents moderate risks that need monitoring and possibly some mitigation efforts.
• Green indicates low risks that are acceptable and may require minimal oversight.

The color-coding allows project managers and teams to quickly assess the risk landscape at a glance, facilitating more efficient decision-making and prioritization of risk responses. This matrix is primarily focused on assessing the severity of risks, rather than on the broader processes of assessing, analyzing, or evaluating risks. Understanding risk severity helps teams identify which risks need to be addressed urgently and which can be managed with a lower level of attention, aligning resources accordingly to ensure project success.