What is often over looked is the fact that a risk registers are more than just handy lists. They are tools that capture and enable a systematic approach to risk management. Risks can be identified through by a number of different means. From brainstorming in the boardroom right through to mini risk assessments undertaken by individuals or teams in the field.
It is important to remember that the complexity or severity of the risk should not dictate how the risk is described.
All risks should contain enough descriptive to offer an overall understanding of exactly what the risk is. Once a risk has been identified, risks are rated on the likelihood of an event happening, as well the consequence should an event occur.
The integrity of all item entries is also important, so you need a limited access policy for the register that defines who should be able to update the register's information and who can read it.
Finally, it should be noted that to be effective and timely as part of the risk management plan, the risk register should be treated as a "living and breathing" document and should evolve over time with potential risks removed and new ones added as the organization's risk profile and external risk environment change.
While there is no standard list of components that should be included in the risk register, the following is a list of some of the most widely used components. Date: As the risk register is a living document, it is important to record the date that risks are identified or modified.
Optional dates to include are the target and completion dates. Risk description :A brief description of the risk, its causes and its impact. Existing controls : A brief description of the controls that are currently in place for the risk.
Consequence: The consequence severity or impact rating for the risk, using scales e. Likelihood: The likelihood probability rating for the risk, using scales e. Overall risk score: Determined by multiplying likelihood probability times consequence impact for a scale ranging from 1 to Risk ranking: A priority list which is determined by the relative ranking of the risks by their overall risk score.
Trigger: Something which indicates that a risk is about to occur or has already occurred. Risk owner: The person whom the project manager assigns to watch for triggers, and manage the risk response if the risk occurs. Some examples of the types of information included in a risk register—the type of event and the scoring and, in these cases, the mitigation techniques used to stop the event from occurring—follow.
If such an event actually occurred, the appropriate information would be added to the register by including the date of the event, assigning a number to the event, and including actions taken to handle the risk and its ultimate status, i. Let's assume the potential risk event is a vehicle accident. Since the company involved in putting together the risk register owns a vehicle fleet, it is determined that the chance of an accident is likely, resulting in a score of 4.
The consequences of such an occurrence, however, are judged to be only moderate, since most accidents normally result in relatively small losses, resulting in a score of 3. The risk level rating therefore is 12 4X3. Many companies create and maintain their risk registers using excel and other spreadsheet tools. This works quite well at the beginning of a project, when the risk register isn't being updated based on new and evolving site risks, and when it is being updated and managed by the one or two people responsible for this part of project planning.
The major problems of using rigid spreadsheets for your risk register arise when the project begins, when a project manager or administrator is being inundated with new risks and information which have been documented on word docs and PDFs and need to be transferred to the register.
This requires a lot of manual data entry and admin, and also increases the chance that information is going to be inaccurate and out-of-date.
To solve this problem, many companies today are using tools which connect the site and in the office in real-time. What does this look like?
Instead of documenting new and evolving site risks using paper or PDFs, workers today can use an electronic device like a mobile or tablet. This is great, because it reduces paperwork, but the real value comes from what happens when all of this data is organised and stored in a register format.
Once a site worker documents a risk or hazard, that risk or hazard is automatically synced to the system which houses the risk register. If the risk is associated with specific activity, then that activity's risk register will be updated automatically - so you'll have a new row with all of it's properties automatically. If it's from a different functional risk, then you or a designated project manager will receive a notification about the new risk automatically, which enables them to make a call as to whether the master register should be updated.
In addition, all of your risk register records stay stored and searchable online, and all of them can also be exported when required. As an additional bonus, you can even track how many risks are arising on certain projects, the type and severity of the risks being identified and more using real-time analytics which aggregate and display all of that real-time information. For obvious reasons, this type of control and functionality is dramatically more effective than a simple register spreadsheet - and can really enhance and boost the quality of risk identification and assessment on your projects - which is the true purpose of a risk register.
A risk register with example risks for general project management - which can be modified and added to as you see fit. Remove the need for 'updating the spreadsheet' and keep all of your lock and tag outs neatly organised and always findable. His aim is to bring awareness to a brighter future for the heavy industries where people and companies work smarter. Save my name, email, and website in this browser for the next time I comment.
Purpose of a risk register: Here's what a risk register is used for.
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