What is a risk heat map and what does it show?

What is a risk heat map and what does it show?

• A. A chart showing annual financial performance.
• B. A map of regulatory requirements by country.
• C. A visual display of risk levels across likelihood and impact to identify priorities for action.
• D. A schedule of risk remediation tasks.

Answer: (C)

A risk heat map visually displays risk levels across likelihood and impact, helping you see where action is most needed. It places each risk on a grid where one axis represents probability (how likely it is) and the other represents consequence (how severe it would be). The risks are usually color-coded to show severity, so you can quickly spot which ones are high-risk. This makes it clear which risks to prioritize for action, and it also supports allocating resources and tracking how risk exposure changes as controls are put in place. It’s not describing annual financial performance, a regulatory map by country, or a schedule of remediation tasks—that’s a different type of tool.

A risk heat map visually displays risk levels across likelihood and impact, helping you see where action is most needed. It places each risk on a grid where one axis represents probability (how likely it is) and the other represents consequence (how severe it would be). The risks are usually color-coded to show severity, so you can quickly spot which ones are high-risk. This makes it clear which risks to prioritize for action, and it also supports allocating resources and tracking how risk exposure changes as controls are put in place. It’s not describing annual financial performance, a regulatory map by country, or a schedule of remediation tasks—that’s a different type of tool.