Overview

The Risk Matrix is a new analytics feature that provides a visual overview of your engagement's risk profile. Using a likelihood and magnitude scoring system, you can quickly assess, prioritise, and manage audit risks through an interactive matrix display.

This feature is currently in beta. We'd love to hear your feedback—please contact support with any comments, suggestions, or issues you encounter.

What is the Risk Matrix?

The Risk Matrix displays your engagement risks on a 5x5 grid, plotting each risk according to its likelihood (how probable the risk is) and magnitude (the potential impact). This helps you:

• See your overall risk profile at a glance
• Quickly identify significant risks requiring attention
• Filter and drill down into specific risk categories
• Ensure consistent risk assessment across your team

Scoring Your Risks

Once Advanced Risk Scoring is enabled, you can score individual risks:

1. Open your engagement file
2. Navigate to the Risks page
3. Click on a risk to open the risk panel
4. Locate the Likelihood dropdown and select a score from 1-5: 
   • 1 - Very Low
   • 2 - Low
   • 3 - Moderate
   • 4 - High
   • 5 - Very High
5. Locate the Magnitude dropdown and select a score from 1-5 (same scale as above)
6. The system automatically calculates: 
   • Risk Score = Likelihood × Magnitude
   • Risk Level based on your score and any overrides

Understanding Risk Levels

Risks are automatically categorised into four levels based on their scores:

Using Overrides: You can manually override the calculated level using the Significant Risk flag. For example, if a risk scores as "Elevated" but you determine it should be "Significant" due to other factors, set the Significant Risk flag to "Yes". This is particularly useful for rebuttable presumptions under auditing standards (e.g., revenue recognition may be flagged as significant while your assessment shows lower likelihood and impact).

Viewing the Risk Matrix

1. Open your engagement file and navigate to the Risks page
2. Locate the Risk Matrix (beta) toggle switch in the top-right area of the page
3. Click the toggle to turn it on
4. The Risk Matrix will appear between the filter area and your risk list

The matrix displays:

• The Grid: A 5×5 matrix showing risk counts at each likelihood/magnitude intersection
• Risk Level Scale: Summary counts of Significant, Elevated, Normal, and Unrated risks
• Overrides: Count of risks where the flag has been manually set

Interacting with the Risk Matrix

Hover over any cell in the matrix to see:

• The exact likelihood and magnitude values
• The number of risks in that category
• The calculated risk rating

Click on any element to filter your risk list:

• Click a number in the matrix to show only risks with that specific likelihood/magnitude combination
• Click a Risk Level (Significant, Elevated, Normal, Unrated) to filter by level
• Click an Override count to see risks where manual flags have been applied

Filtering Risks

Use the enhanced filter options to search your risks:

• Likelihood: Filter by specific likelihood scores (1-5), with multi-select support
• Magnitude: Filter by specific magnitude scores (1-5), with multi-select support
• Level: Filter by Significant, Elevated, Normal, or Unrated
• Significant: Filter by the Significant Risk flag (Yes/No/All)

Click Reset Filters to clear all selections and return to the default view.

Tips for Using the Risk Matrix

• Complete your scoring: The Unrated count helps identify risks that still need likelihood and magnitude values
• Review significant risks: Click on the Significant count to quickly review all high-priority risks
• Check overrides: Regularly review overridden risks to ensure manual flags remain appropriate
• Use for review: Managers can use the matrix to quickly assess overall engagement risk before sign-off

Disabling Advanced Risk Scoring

You can disable this functionlity for your firm.

1. Navigate to Firm Settings
2. Locate the Advanced Risk Scoring section (below Planning Lockdown)
3. Uncheck the checkbox "Disable the scoring of risks by likelihood and magnitude" 

Note: Advanced Risk Scoring is enabled by default for all new engagement files. Existing files created before the feature launch will continue to use the traditional risk assessment method.