What is Risk Register?
A documented record of identified risks, their likelihood and impact, mitigation strategies, and the person responsible for managing each risk.
Detailed Explanation
A risk register is a structured tool for identifying, assessing, and managing risks throughout a project or ongoing operation. For each risk, it typically records: a description, the category (technical, financial, operational, external), the probability of occurrence, the potential impact, the overall risk rating (usually probability multiplied by impact), mitigation or treatment strategies, the risk owner, and the current status. Risk registers should be living documents, reviewed and updated regularly. New risks are added as they are identified, and existing risks are reassessed as circumstances change. The register serves as both a management tool and a communication device.
Why It Matters
Unmanaged risks become unpleasant surprises. A risk register forces proactive thinking about what could go wrong and ensures that mitigation plans are in place before problems occur. It also creates accountability by assigning each risk to a specific owner who is responsible for monitoring and managing it.
Example
A commercial building project maintains a risk register with 25 identified risks. The highest-rated risk is "subcontractor insolvency" (high probability in the current market, high impact on timeline). The mitigation strategy includes performance bonds, regular financial health checks, and pre-qualified backup subcontractors for critical trades. When a subcontractor does go into administration, the backup is engaged within 48 hours with minimal project delay.
Related Terms
The longest sequence of dependent tasks in a project that determines the minimum project duration.
The uncontrolled expansion of a project's scope beyond its original objectives, typically occurring incrementally through small, unmanaged additions.
The process of identifying, analysing, planning, and engaging with individuals or groups who have an interest in or influence over a project or business decision.
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