How do you build a risk heatmap with dynamic scoring in Excel

Question

What’s the best way to build a dynamic risk heatmap in Excel with scoring logic? Ideally, the heatmap updates as risk impact/probability values change.

Answer 1

A dynamic risk heatmap in Excel visualizes the severity of risks based on impact and probability, allowing you to prioritize risk responses. Here's how to create one that automatically updates when scores change.

• Begin with a Risk Register Table that includes "Risk ID," "Probability," "Impact," and "Risk Score" (calculated as impact × probability).
• Define score ranges. Determine how to categorize risk severity: low (1-3), medium (4-6), high (7-9), and critical (10-12).
• Create a 5x5 matrix layout, with "Impact" on one axis and "Probability" on the other. Fill in cells with COUNTIFS or FILTER formulae to show how many hazards are in each score cell.
• Use Conditional Formatting to visually discern severity, which applies color codes (green, yellow, red) based on cell values or thresholds.
• Link to Slicer Filters - Create slicers for "Owner," "Project," and "Category" to allow users to dynamically explore risk distribution.
• Auto-Update with Data Changes - The heatmap automatically updates to reflect new data as your risk register changes, eliminating the need for manual recalculations.

This Excel solution provides PMO-level risk visualization to any project without the need for specialized business intelligence tools.