Risk register

A risk register is a record of all the risks that your organization has identified, the likelihood and
potential effects of those risks, the steps you are doing to lessen those risks, and who is in charge
of managing them. A risk register is practical because it allows you to save all of your risk data in
one place that is simple to find.

A Risk Register is important because it outlines how the team commits to managing the risks that
have been identified and who is accountable for doing so.

Organizations use a risk register as a document to track:

 Each and every risk that your company has recognized

 the chances of a risk happening and its effects,
 What steps are you taking to lessen those risks and
 Who is in charge of overseeing them.

Why we identify project risk (importance of risk identification in a project)

A firm may save money and safeguard its future by developing a risk management strategy and
taking into account the many potential risks or events before they happen. This is due to the fact
that a strong risk management strategy will assist a business in creating policies to prevent
prospective risks, lessen their effects should they materialize, and deal with the consequences.
Organizations may make better business decisions with more confidence thanks to their capacity
to comprehend and manage risk.

Furthermore, a company can achieve its objectives with the aid of solid corporate governance
rules that place a particular emphasis on risk detection and management.

Other significant advantages of risk detection are:

 creates a secure working environment for all employees and clients.

 improves corporate operations' stability while lowering legal liability.
 offers defense against occurrences that are harmful to the business and the environment.
 prevents possible harm to all those involved and their property.
 helps determine the organization's insurance requirements to avoid paying unused
charges.

What is included in a risk register

Depending on the company and the project, several risk registers may be used. But the majority of
risk register templates include these frequently employed components:
  Risk identification ID: A name or ID number to identify the risk.
 Risk description: A brief explanation of the risk.
 Risk breakdown structure: A risk breakdown structure is a chart that allows you to identify
all your project risks and categorize them.
 Risk categories: There are many risk categories that can impact a project such as a
schedule, budget and technical and external risks.
 Risk analysis: The purpose of risk analysis is to determine the probability and impact of a
risk. You can either do a qualitative risk analysis or a quantitative risk analysis.
 Risk probability: You’ll need to estimate the likelihood of each risk and assign a qualitative
or quantitative value.
 Risk priority: The risk priority is determined by assigning a risk score to each risk, which is
obtained by multiplying the risk impact and probability values. If you’re using qualitative
measurements, you’ll need to prioritize risks with the highest impact and highest
probability.
 Risk response: Each risk needs a risk response to mitigate its effect on your project. Those
risk responses are also documented in a risk response plan.
 Risk Ownership: Each risk needs to be assigned to a team member who becomes a risk
owner. The risk owner is responsible for deploying the appropriate response and
supervising it.

How to create a risk register

Examples of risk statements:

 Design
 Environmental
 Right of way
 Construction

References;

Risk register. Risk Register - ACOSS Resilience. (n.d.). Retrieved September 20, 2022,
from https://resilience.acoss.org.au/the-six-steps/managing-your-risks/risk-
register#:~:text=A%20risk%20register%20is%20a,is%20responsible%20for
%20managing%20them.
Landau, P., Deen, D., Koeneke, B., Westland, J., & Malsam, W. (2022, September 16).
ProjectManager blog Archives. ProjectManager. Retrieved September 20, 2022, from
https://www.projectmanager.com/blog