RISK MANAGEMENT

Risk Management

Risk Management

Part 8: Project Risk Management

1. Risk Register

Upon the completion of the risk management plan, a master document known as a risk register is created. This article discusses what a risk register is, the importance of one, and its components. A link to an easy-to-use risk register template, in Excel format, is also in included in this article.

Risk management is critical to the success of any project. If, during the planning stage of the project management process, a risk management plan is not implemented, the project in all likelihood will fail. In my previous article 'A Practical Approach to Creating a Risk Management Plan,' Video Game Delivery introduced a seven-step process for creating a risk management plan. In this article, Video Game Delivery will highlight the next step in the risk management process, creating a risk register.

An essential tool in any project management methodology is the risk register or risk log. This document is a means of recording the identified risks, their severity, and the actions steps to be taken. The risk logic can be a simple document, spreadsheet, or a database system. The most effective format for this document is a table, because it will allow a great deal of information to be conveyed in a few pages. If the information is presented in a paragraph form, you run the risk of people not reading it, although all of the relevant information is there.

As the use of risk management as an integrated process of project management has grown over the years, risk management information systems (RMIS) have evolved. RMIS stores data for creating reports and serves as the repository for all current and historical information related to project risk. The risk register should evolve over time with potential risks removed and new ones added as the project progresses.

The best way to view the risk register is as a management tool through a review and updating process that identifies, assesses and manages risks down to acceptable levels. It provides a framework in which problems that may arise and adversely affect the delivery of the anticipated benefits are captured and actions instigated to reduce the probability and the impact of that particular risk. Make your risk register visible to the project stakeholders so they are able to see risks that concern them being addressed. They may flag new risks you haven't identified, and give other options for risk mitigation.

There is no standard list of components that should be included in the risk register. The Project Management Institute Body of Knowledge (PMBOK) and PRINCE2 among other organizations make recommendations for risk register contents, but they are not set in stone. Video Game Delivery have comprised a list of some of the most widely used components. They are as follows:

* Dates: As the 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.

* Description of the Risk: A phrase that describes the ...