A risk matrix is a visual tool used in cybersecurity and risk management to assess and prioritize potential threats. It works by plotting the likelihood of an event occurring against the potential impact or severity of that event. This allows organizations to quickly identify which risks require immediate attention and which can be monitored or accepted. By multiplying the probability of an incident by its impact, the risk matrix helps decision-makers allocate resources more effectively, ensuring that the most critical vulnerabilities are addressed first. The matrix is often color-coded to highlight varying levels of risk, making it easy to interpret at a glance.