How to create a project risk register? | #44 Getting started with project management

Managing risks in a project is crucial to its success. According to research, only 30% of projects get completed on time, and more than 70% of them struggle with delays or additional expenses. To avoid such failures, the Project Manager should acknowledge key risks and implement appropriate countermeasures, and to do so he or she creates a risk register. It is a tool that helps manage and anticipate project risks. But how to prepare a successful risk register for project planning and execution? Read on to find out!

How to create a project risk register? – table of contents:

1. Introduction
2. What should the risk factor register look like?
3. How to prepare a risk register of risk?
4. Summary

Introduction

Risk is an integral part of any project. To manage it effectively, you need a tool that helps you identify, monitor and respond effectively to emerging obstacles, in other words, a risk register. The successful completion of many corporate and organizational projects is jeopardized at some stage of implementation. For this reason, the Project Manager has to get familiar with risk management methods and tools, and above all – to skillfully prepare a risk register.

A risk register, also known as a risk log or risk factor register, is a document that records all identified obstacles, threats or hazards. It also includes their analysis as well as countermeasures to take in case of their emergence during the project. The register becomes a collection and storage of information about all risks and opportunities related to the project.

What should the risk factor register look like?

The risk register should appear as a legible document and contain the following information:

• Description of the risk – what is the risk and what area of the project it affects?
• Possible consequences – what threats do the hazards pose to the project? Will it entail the emergence of further repercussions? Can we prevent them?
• Probability of occurrence – is it a casual risk, associated with, for example, delays in completing tasks; or is it a rare one that can jeopardize the entire project effort?
• Priority – how serious is this risk concerning others with a similar probability of occurrence?
• Responsible persons – who will bear the responsibility for responding to the risk appropriately, quickly and effectively?
• Risk response plan – what actions to take when difficulties emerge?

The risk register should therefore gather information on all identified risks, their analysis, as well as countermeasures. It also needs regular updating to all project stakeholders so that everyone can keep abreast of and respond to emerging risks and emergencies.

How to prepare a risk factor register?

The preparation of the risk register consists of several steps:

1. Risk identification. The first step is to identify all risks associated with the project. You can do it by conducting a brainstorming session with the team or reviewing literature related to the project. Once you create a long list of risks, analyze to break down all potential threats into technical, resource-related, and project business environments.
2. Risk assessment. Once identified, analyze the risks to assess their potential impact on the project. Answer the questions:

• Which risks are most likely to occur? It’s also a good idea to list them in order of likelihood of occurrence. This will help you determine which ones need the most attention.
• What might their consequences be? Here the best way would be to start the list with the most serious consequences.

Risk response planning. Based on the analysis and prioritization, the Project Manager should develop a response plan for each of the identified risks. Preferably, define the measures to take in case the risk occurs. It’s also a good idea to prepare a contingency plan, a blueprint with scenarios including guidance on how to behave when such events happen that you can implement as soon as it occurs.

Update the register. The risk register should be updated regularly to properly track and manage identified risks, as well as add new ones as needed as the project progresses.

One of the most common mistakes made when preparing a risk register is insufficient analysis of the causes of risks and insufficient planning of risk responses. To avoid this mistake, the Project Manager should devote time and attention to analysis and planning. In this way, he or she will gain confidence that the most likely risks have been properly identified.

Summary

A risk register is a tool for managing and anticipating risks associated with project implementation. It contains detailed information on the identified risks, their analysis and countermeasures. Moreover, the project team should cooperate in drafting the register at the planning stage of the project, and then keep it updated and available to all project stakeholders.

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