What does Risk Map mean? Read on to discover the definition & meaning of the term Risk Map - to help you better understand the language used in insurance policies.
A graphical depiction of a select number of a company's risks designed to illustrate the impact or significance of risks on one axis and the likelihood or frequency on the other. Risk mapping is used to assist in identifying, prioritizing, and quantifying (at a macro level) risks to an organization. This representation often takes the form of a two-dimensional grid with frequency (or likelihood of occurrence) on one axis and severity (or degree of financial impact) on the other axis; the risks that fall in the high-frequency/high-severity quadrant are given priority risk management attention.
We hope the you have a better understanding of the meaning of Risk Map.