5×5 Risk Matrix: A Practical Guide to Workplace Risk Assessment
                     5×5 Risk Matrix: Scoring And 
Prioritising Workplace Risk
Two axes, twenty-five cells and four bands. 
How Australian organisations rate likelihood and consequence consistently, 
and turn a long list of concerns into a ranked set they can act on.
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DEFINITION
What A 5×5 Risk Matrix Is
A visual tool for evaluating and prioritising risk. 
Five levels of likelihood on one axis, five levels of 25 1-25
consequence on the other, giving 25 cells and a 
colour-coded read on how serious each risk is. cells in the grid risk score range
It is not only for large corporations. Construction, 
healthcare, finance, education, aged care and 4 2
technology all use it, at any size.
bands, low to extreme axes: likelihood, 
consequence
Many organisations label the axes probability and impact 
instead. The two pairs mean the same thing. What matters 
is that one set of terms is applied everywhere.
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THE GRID
Likelihood × consequence. Read the two 
The 5×5 Matrix, With Scores components, not only the product.
Likelihood ↓ / Insignificant 1 Minor 2 Moderate 3 Major 4 Severe 5
Consequence →
Almost certain 
5 5 10 15 20 25
Likely 4 4 8 12 16 20
Possible 3 3 6 9 12 15
Unlikely 2 2 4 6 8 10
Rare 1 1 2 3 4 5
Low 1-4 Medium 5-9 High 10-15 Extreme 16-25
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AXIS ONE
The Five Likelihood Levels
5 More than once a year, or already Almost certain Expected to occur in most circumstanceshappening
4 Likely Will probably occur at some point Roughly once a year
3 Possible Might occur at some time Once every one to five years
2 Unlikely Could occur but is not expected Once every five to ten years
1 May occur only in exceptional Rare circumstances Less than once in ten years
Two teams using the same five words with different meanings produce ratings that cannot be compared. 
Write the frequency guide down and apply it everywhere.
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AXIS TWO
The Five Consequence Levels
Level Safety Financial Operational Reputational
5 Severe Fatality or permanent Threatens viability Business stops National coverage, disability regulator involvement
4 Serious injury, Significant unbudgeted Major disruption for Industry or local mediaMajor hospitalisation loss days
3 Injury requiring Noticeable budget Disruption to one Complaints, some Moderate medical treatment impact function external awareness
2 First aid only Absorbed within Brief, contained Internal onlyMinor budget disruption
1 Insignificant No injury Negligible No real disruption No impact
Rate against the highest applicable dimension. A serious injury with a minor financial loss is major, not minor.
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READING THE SCORE
Four Bands And What Each Demands
16-25
Extreme
Unacceptable. Act immediately, escalate to executive or board, and stop or redesign the activity.
10-15
High
Active management. A senior manager owns it with a date, and it is reviewed monthly.
5-9
Medium
Manageable with existing controls, provided they work. Assign an owner and review quarterly.
1-4
Low
Acceptable at current levels. Monitor and review annually, or when something changes.
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THE CASE FOR IT
Why Organisations Use A 5×5 Matrix
01 02 03 04 05
It prioritises risks It supports It evidences It builds safety It protects delivery
prevention management culture
Effort goes where it Fewer surprises derail 
matters rather than Risks are considered in Ratings, owners and People notice hazards schedule, budget and 
where it is loudest. planning, not after an controls show insurers and are more willing to stakeholder confidence.
incident. exposures are raise them.
understood.
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METHOD
How To Use It, In Seven Steps
1 2 3 4
Identify the risks Assess likelihood Assess consequence Plot and score
Brainstorming, history, Use the five levels and the Across safety, financial, Place each risk on the grid 
expert judgement, and agreed frequency guide. operational and reputational. and record the resulting 
near-miss records. score.
5 6 7
Reg 36 and Reg 38
Analyse the pattern Decide the response Implement and 
monitor The model WHS Regulations 
If everything is medium, Avoid, transfer, mitigate or set the ranked hierarchy of 
the scale is not being accept. For WHS, work the Review when controls fail, control and the events that 
applied honestly. hierarchy of control in order. work changes, or a new trigger a review.
hazard appears.
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WORKED EXAMPLE
Five Risks An Australian Employer Carries
Risk Likelihood Consequence Score Band Response
Manual handling injury in the Likely (4) Major (4) 16 Extreme Eliminate or substitute the lift 
warehouse, no refresher training in first. Training alone is an 
18 months administrative control
Sustained excessive workload in a Likely (4) Moderate 12 High Redesign the work. An 
small team after two resignations (3) assistance program does not 
reduce the demand
Contractor works on site without Possible (3) Major (4) 12 High System control at the gate. Do 
induction records not rely on self-reporting
Personal information emailed to the Possible (3) Moderate 9 Medium Technical control first, such as 
wrong recipient (3) external-recipient warnings, 
then training
Key compliance knowledge held by Unlikely (2) Major (4) 8 Medium Document and cross-train. Low 
one person likelihood, high consequence, so 
treat the consequence
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LIMITS AND NEXT STEPS
What The Matrix Cannot Do
It compresses judgement into a number that looks more 
precise than it is. 1,000+
It hides rare but catastrophic risks, which land in the medium 
band on a score of 5. Australian organisations use Sentrient
It says nothing about control effectiveness. Untested controls 
make the residual figure an assumption.
The matrix shows where the risks sit. A 
It encourages clustering. A register where everything is risk management system applies one 
medium has stopped discriminating. rating scale across the register, holds 
controls and evidence beside each risk, 
It is a snapshot. A rating made in March describes March. and reports without manual chasing.
None of that argues against using one. It argues for rating Book a no-obligation demonstration 
twice, before and after controls, and treating residual risk to see how it works at your size.
as the number leadership decides against.
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