Overview
The Risk module in Formalize provides a structured workflow for identifying, assessing, and managing risks across your organization. By combining configurable risk types, approval flows, custom fields, and mitigation strategies, the module ensures operational flexibility while maintaining consistent risk governance.
Navigating the Risk Module
To access the Risk module, select Risks from the main navigation menu.
The main Risk dashboard includes:
Risk Type Tabs: Switch between different categories of risks (e.g., Operational, Security, Financial).
Risk Matrix: A visual grid displaying the Probability x Consequence score positioning for active risks.
Risk Inventory List: A filterable list of all existing risks within the selected risk type.
Creating Risks
In the upper-right corner of the Risk module, click + Add Risk.
Complete the required entry fields:
Name: A clear title for the risk.
Risk Type: Select a default or custom risk category.
Probability & Consequence Values: Select the score values for each axis. The overall Risk Score will auto-calculate based on your Risk Type configuration settings.
Custom / Impact Fields: Fill in any additional custom fields used to determine consequence ratings.
Click Create.
Configuring Risk Settings
To configure how risks are categorized, scored, and documented, go to: Settings -> Risks
From this admin panel, you can manage the following areas:
Risk Types (Scoring, matrices, and calculation formulas)
Mitigation Fields
Folders
Risk Types & Scoring Models
Risk types categorize risks (e.g., Operational, Legal, Information Security) and define their scoring models. Each risk type maintains its own tailored matrix grid ranging from 3x3 up to 10x10.
Adding a New Risk Type
Go to Settings -> Risks -> Risk Types.
Click + Add Type.
Enter the Name of the risk type.
Select a Mitigation Type (Calculated or Manual).
Click Save.
Customizing Matrix Axes & Calculations
Click on any existing Risk Type to open its configuration panel:
Configure Matrix Axes (Consequence & Probability):
Rename axis labels to match your internal framework.
Add descriptions and custom color codes to matrix cells.
Set numeric values for severity calculations.
Click + Add Option to introduce new scale levels on either axis.
Configure Total Risk Score Calculation:
Select the scoring formula:
Sum: Probability + Consequence
Product: Probability x Consequence
Custom Formula: Calculate using custom field variables.
Adjust score threshold ranges by editing the numerical range limits.
Custom Fields & Impact Calculations
Custom fields allow you to track additional metadata on risk entries. Additionally, single-select numeric custom fields can act as sub-impact drivers to automatically calculate the Consequence or Probability score of a risk.
Setup: Navigate to Settings -> Risks -> Custom Fields to add single-select or multi-select fields.
Impact Scoring Example: You can create custom fields for Financial Impact, Reputational Impact, and Operational Impact. Add numeric values to the options as explained in Custom fields for Numeric Calculations.
In your Risk Type settings, set the overall Consequence or Probability value to be Calculated. Define the formula by selecting options from the dropdown. You can use Minimum, Maximum, Average and Sum and select the fields to be computed. You can also use Conditionals (IF) functions.
Mitigation Fields
Mitigation fields extend the Risk Strategy section of an individual risk entry. They allow teams to capture structured strategy details beyond standard text comments.
Setup: Create additional fields in Settings -> Risks -> Mitigation Fields.
Usage: Newly configured fields automatically appear under the Risk Strategy tab on risk entries during strategy planning and periodic reviews.
We hope this article was helpful!
If you have any additional questions, please reach out to us via chat in the bottom right corner of the page — our team is always happy to assist you further.