Final answer:
In a Risk Matrix, the horizontal axis typically represents the probability of an event occurring, while the vertical axis represents the severity of the impact if the event occurs. These axes are essential in evaluating risks to prioritize and manage them effectively.
Step-by-step explanation:
In a Risk Matrix (or grid), which is a tool used to assess and prioritize risks, the axes represent two dimensions of risk: probability and severity. Specifically, the horizontal axis typically represents the probability, likelihood, or frequency that an event will occur. On the other hand, the vertical axis represents the severity, impact, or consequence of the event if it does occur. Together, these axes help in assessing the overall level of risk by categorizing potential events based on how likely they are to happen and how severe their impacts could be if they did.
The layout of the Risk Matrix is not universally fixed, and in some instances, it is reversed, with the severity on the horizontal axis and the probability on the vertical axis. Regardless of the orientation, it is crucial for the Risk Matrix to clearly define and differentiate these two dimensions so that it effectively assists in making informed decisions about managing risks.