Use likelihood‑impact matrices as decision tools, not dashboards that hide tail risk. Align scales to risk appetite, add velocity where needed, and tie heat‑map outputs to actions.
In a standard reputation risk matrix, the y‑axis typically represents ______ while the x‑axis represents ______.
controls strength; residual risk
velocity; exposure
impact; likelihood
likelihood; impact
Which practice best prevents false comparability across markets when scoring reputation impact?
Letting each team invent its own color scheme
Averaging scores from unrelated stakeholder groups
Ignoring regulatory exposure when scoring impact
Using calibrated scale definitions and applying market‑specific risk appetite thresholds
A risk sits at medium likelihood but would escalate nationally within hours if triggered. What add‑on dimension should you consider?
Risk velocity to reflect speed of onset and spread
Creative novelty to reward unusual campaigns
Number of open projects in the PMO
Gross margin to replace consequence scoring
When should an amber heat‑map cell still trigger executive escalation?
When it is reported in a quarterly memo
When it breaches defined risk appetite or KRI thresholds despite its color
When another company has the same color on their map
When the issue is trending on an internal chat
Which method is most reliable for ranking reputation exposures across business units?
Replace scores with alphabetical labels
Sum impact and likelihood numbers to make a single metric
Score with common scales and sanity‑check via scenario analysis
Use only media mentions volume as the score
What is the recommended link between heat‑map zones and action plans?
Colors are informational only with no assigned actions
Only red items get owners; others are optional
Actions are decided ad‑hoc each time
Pre‑defined triggers connect zones to owners, timelines, and playbooks
Which scoring pitfall most commonly hides tail‑risk in reputation assessments?
Averaging stakeholder impacts into one number
Documenting assumptions
Listing key controls
Noting interdependencies
For board reports, how often should high‑priority reputation risks be reviewed at minimum in 2025 practice?
Annually only
At least quarterly, with out‑of‑cycle reviews on triggers
Every two years after internal audit
Only after an external rating changes
Which addition best improves comparability of scores between product lines?
Limit impact to press mentions only
Use unit headcount as the impact proxy
Define impact in concrete terms (e.g., revenue bands, regulatory severity, stakeholder harm)
Allow open‑ended narratives without scales
What is the right role for a heat‑map in executive decisions?
A replacement for appetite statements
A substitute for controls testing
A guarantee that low‑scored items are safe
A communication aide paired with KRIs and scenarios—not a standalone decision rule
Starter
You can read heat maps and speak the language of likelihood and impact. Now link colors to actions.
Solid
Solid operationalization of appetite and velocity—refine scales and reporting triggers.
Expert!
Excellent: your matrices drive decisions with KRIs, scenarios, and clear owners.
