Authority Matrix is the system of assigning responsibility and accountability for decisions in an organization. It defines who has the authority to make a decision, who serves as a second-level check on the decision, and who is accountable for the results. The matrix helps create an environment in which all team members are aware of their roles and responsibilities, enabling them to make better and more informed decisions with clear objectives. By setting up an Authority Matrix, organizations can ensure that everyone involved with a decision understands the associated risks, rewards and outcomes.