Definition:
A Calibrated Risk Matrix is a version of a risk matrix where the severity and likelihood scores have been decided based on real-world data, societal expectations, and/or corporate standards. This is the document that companies will write down how much risk are they willing to swallow. This would use the PEAR model to work through tolerable risk.
Some people and organizations have a hard time with this, as one has to write down how much death is acceptable. It is a weird concept.
Key Points:
- Helps bridge the gap between qualitative and quantitative risk assessments.
- Often used during semi-quantitative SIL determination.
- Intertwines with the PEAR approach
- It is how stated risk tolerance is documented
Example:
A Calibrated Risk Matrix would define “Catastrophic” consequences as those resulting in more than $10M loss or one fatality.
See also: risk matrix, PEAR model, stated risk tolerance
Cited Source:
- CCPS Guidelines for Hazard Evaluation Procedures.