Risk heat map
A risk heat map displays risks against categories such as likelihood and impact to help prioritise discussion and action. Colour bands reflect chosen criteria, not an objective universal scale. The map is a summary: exposure, uncertainty, controls, risk interactions and severe low-probability events need further analysis.
Worked example
A register shows a major plant outage as unlikely but potentially catastrophic and a small billing error as frequent but minor. Plotting both helps discussion, but multiplying category numbers does not establish their expected monetary losses.
Common mistake
Treating ordinal scores as precise probabilities or assuming two risks with the same score require the same response.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | SBL | Direct | September 2026–June 2027 |