What is a Risk Heat Map?

‍

A risk heat map, also known as a hazard index heat map, is a visual tool used by organizations to measure, identify and map risks. 

It allows organizations to track risks over time and compare them against each other. By plotting the risks on a graph, businesses can prioritize the risks and develop mitigation plans accordingly. While all businesses face risks, not all businesses use risk heatmaps.

In most cases, the hazard index heat map depicts the likelihood of risk on the X-axis (horizontal) and the impact on the Y-axis (vertical). This matrix then makes it easy for companies to prioritize risk and to take action to mitigate harmful consequences. 

How the Risk Heat Map Works

The risk heat map usually includes various colors to provide a visual representation of the severity of each risk. For instance, red indicates the highest risk, while green is generally used to represent risks with a lower impact and a lower likelihood of occurrence. 

Risk heat maps can be used to track hazards in the workplace, financial risks, or any other risk that may lead to adverse consequences. 

An important benefit of using the risk heat map is that it allows the company to define materiality; what risks would be considered material and which ones might pose an immaterial threat to the company.

Organizations use risk heat maps to make informed decisions about where to allocate resources and how to manage risks. They can also be used to monitor changes in risk over time and compare the relative importance of different risks.

This makes it easy for companies to determine if certain risks can be reduced with the help of internal controls, or if they need to develop a dedicated strategy or a response to mitigate such risks. 

‍

The Benefits of Using a Risk Heat Map

Risk heat maps offer a myriad of benefits to organizations, such as:

‍

Risk Identification

One of the main benefits of using a hazard index heat map is that it can help you identify potential risks. This is especially helpful for companies working on a new project or plan where there are many unknowns. 

By mapping out the risks, they can get a better sense of what needs to be addressed and where they should focus your attention.

‍

Risk Assessment

Another benefit of using a heat map is that it can help you assess the severity of each risk. This is important when prioritizing which risks need to be addressed first. 

The color-coding system often used in heat maps makes it easy to see at a glance which risks are more severe and which ones can be put on the back burner for now. 

‍

Risk Monitoring

Finally, heat maps can also be used to track how risks have changed over time. This is helpful for understanding whether the actions you've taken to mitigate risks have been effective or not. 

It can also give companies an early warning sign if a previously low-risk suddenly becomes high-risk so that they can take action before it's too late.

Hazard index heat maps can be used to determine the likelihood of a risk occurring, and the impact that it’s expected to cause.

To define risk, companies often use the following formula: 

Risk = Impact x Probability of Occurrence

An important factor to consider is that risk in this heat map is based on severity. Certain risks, which might not be as severe, may need to be addressed urgently, even if they aren’t as severe. 

‍

Improving General Employee Safety and Wellbeing

Arguably the biggest benefit of using risk heat maps is that they help make the workplace safer. Teams get a common language to discuss risk across the organization, which improves collaboration across departments and improves decision-making involving risk. 

This helps make the workplace safer and reduces the risk of accidents or safety incidents, which creates a knock-on effect, improving morale and productivity throughout the organization and preventing major disruptions. 

‍

Use Protex AI to Monitor and Mitigate Risks in the Workplace 

Protex AI is an advanced workplace safety tool that connects with your company’s CCTV monitoring system. Leveraging AI, Protex AI can capture unsafe events on-site, automatically recording them for review by EHS teams later. 

This helps drive proactive safety decisions in the workplace, improving worker safety and reducing any serious incidents. By promoting data-informed decision making, companies can identify key areas that need attention and evaluate results to better track safety performance in the organization.  

‍