---
agentTools:
  projectIndex: https://regscale.readme.io/llms.txt
---

# Risk Model

Risk Configuration allows administrators to define custom risk and opportunity models, configure scoring logic, and tailor assessment criteria based on organizational standards.

# Risk Model Configuration Guide

This guide describes how to create and configure a custom **Risk Model** within the RegScale platform to support standardized and repeatable organizational risk assessments.

## What Is It?

A **Risk Model** in RegScale defines how risk is calculated, categorized, and displayed. This includes:

* The probability × consequence scoring matrix
* Default numeric scoring
* Color ranges for severity visualization
* Business impact areas used across risk assessments

Risk Models ensure that assessors use a consistent and objective method for identifying and evaluating risk.

## Why Would You Use It?

Organizations use custom Risk Models in RegScale to:

* Align risk scoring with internal governance, regulatory frameworks, or industry standards
* Tailor risk matrices (3×3, 4×4, or 5×5) to fit their methodology
* Define clear scoring guidance for probability and consequence
* Customize severity color thresholds (e.g., green, yellow, red)
* Maintain consistent impact areas (e.g., financial, compliance, operational)
* Apply a reusable model across Risks, Issues, Findings, Assessments, Projects, and more

## Benefits

* **Standardization** — Ensures all teams score risk the same way
* **Clarity** — Improves communication to stakeholders through uniform color-coding and guidance
* **Scalability** — One model can be used across systems, vendors, and programs
* **Auditability** — Establishes clear documentation of how risk is assessed
* **Consistency** — Prevents subjective scoring or assessment drift between assessors

## How to Use

Follow the steps below to create, edit, and publish a custom Risk Model in RegScale.

### 1. Navigate to Risk Configuration

1. In the left rail, select the **Admin** (gear) icon at the bottom.
2. In the **Administration** panel, select **Risk Config**

### 2. Create a New Risk Model

1. Click **Create New** in the upper-right corner
2. Enter a **Title** for your model
3. Set **Model Type → Risk**
4. Select a matrix size (3×3, 4×4, or 5×5)
5. Click **Save**

### 3. Edit the Risk Matrix

Click **Edit** to customize matrix cells:

* Override the display title
* Update the numeric score
* Add guidance or descriptive text
* Adjust color or severity where needed

### 4. Risk Categorization Options

Here you can update:

* Labels (Very Low, Low, Medium, High, Very High)
* Probability/Consequence assignment
* Numeric score association
* Guidance text

### 5. Default Risk Color Ranges

For each color band:

* Set **minimum score**
* Set **maximum score**
* Optionally adjust the severity color

### 6. Business Impact Areas

Common impact areas include:

* Compliance
* Cybersecurity
* Environmental
* Financial
* Legal
* Operational
* Reputational
* Safety

Add, rename, or delete impact areas as needed.

### 7. Publish the Configuration

1. Scroll to the bottom
2. Click **Publish Configuration**

## Best Practices

* **Standardize across your organization**
* **Provide clear guidance**
* **Align with governance frameworks**
* **Revisit periodically**
* **Document changes**

## Additional Resources

* <https://regscale.readme.io>
* <https://regscale.readme.io/docs/risk-management-framework-rmf>