A risk Log, which is also referred to as risk register is a very important document that needs to be developed in the early stages of a risk management project. This document helps in filing and tracking risk management issues as they come along. It is important to note that all organizations face risks in their operations as they strive to achieve their corporate goals. Developing a risk register helps organizations to handle risk in the appropriate way.
Risk Register Overview
There are several ways in which information in a risk register can be developed; which including paragraph-style document, spread sheet and database. However, the best way to develop a risk register is by creation of a spread sheet-table. This is because other formats of risk register development such as paragraph style documentation makes reads to skip some information since they cannot read the document in full.
Indicating the date when an item was identified and recorded on the register is a very important step in developing a risk register Other information that needs to be indicated in the recording process includes the last time the entry was updated and when it the entry was closed; some items. Information about the time an item was closed is usually maintained for purposes of historical analysis and that is the main reason as to why such kind of information is mostly maintained in a risk register section called closed risks.
Steps in Developing a Risk Register
Creation of the register- this step in a risk register development is undertaken after the approval of the project plan. The basis for this document is usually the risk section of the project plan.
Recording active risks – active risks are then recorded in the created register Some of the information that needs to be recorded at this stage of developing a risk register include date identified, date an event was updated, closure date, current status of the risk possible response action for the risk and the severity of the risk.
Assigning a unique identification number to each risk- this will aid in identifying each risk in a unique way so that one can be able to know the status of the risk at any given time in an easier way. It is advisable to keep this unique identification number consistent throughout the project so as to be in a position of knowing the links of the number to other project items such as risk impact form. project status report and risk identification.
Benefits of Developing a Risk Register
Learning on how to develop a risk register makes one to become active in managing the project and dealing with any type of risk that may be associated with such projects. Risk covers a wide area in that any problem, challenge or factor that affects the completion of a project in a fast and appropriate way is viewed as risky.
Developing a risk register prevents these factors from becoming significant up to the point of making the project fail. Risk registers keep records that help an organization in the establishment of processes and programs that support organizational success.