1.5K
Learn more about the role of a risk register in project management. A key element that contributes to the clear understanding of any risk is its description or definition, usually found in one of the first columns of the risk register. Based on this simple description, we will support an entire risk process. There is no room for being vague or unclear. Unfortunately, we generally spend no time or thought on this important component which might lead us to over or underestimate the risks of the project in the long run. We discuss the risk register, risk log, risk descriptions, risk statement, and risk formulas in proper risk planning and management.
The project has started, and with it, a brand-new risk register is created, filled with our understanding of risk and the requirements for the job at hand. The team is busy setting up a risk identification meeting, and participants are being invited or scheduled to participate. Before you know it, that risk register has taken a life of its own and contains a lot of details that should assist us in making the right decisions for the project going forward.
For a lot of projects out there, this would be the way that we establish our risk register. As time progresses, not to mention, with the help of progressive elaboration, the PM and the team generate a valuable risk register. Over the years, I have seen this exercise create a small but easy-to-fix the problem, which could make our work on risk management better as we go forward if we address it early in the risk process. That small problem is the result of us trying to cut time out of the identification process. We do not spend enough time on our description of the risk so that it is framed properly.
Look at any recent risk register from your organization. Tell me what you see in the risk description column? For most, it will be something similar to weather, inflation, a rise in the price of gasoline, or the quality of part ABC…
I do not pretend to have the perfect solution, but years ago, when I was first introduced to risk management, a wise manager in the risk department I worked in introduced me to a simple formula that I have, in turn, used countless times and taught most of my students.
IF [Event], THEN [Consequences] This is as basic as you can take it, and you have to admit is easy to remember. It just flows as one thinks it.
I have since researched this topic and found others that go a bit deeper in their elaboration of risk. In a briefing published in 2004, Dr. David Hillson, who suggested that risk events should be documented on our ability to understand the risk based on three key components: management, ownership, and reporting. So, it stands to reason that one description must address a variety of factors, not all contained in a word.
Risk descriptions: What is wrong with this picture?
Well, it does not really provide a complete or clear description, and it certainly does not paint a picture of our risk in a way that it is easy to analyze or assign responses or strategies to. Associated with the description is the fact that we clearly need to understand the extent or magnitude of the risk in order to make future decisions that can handle the totality of that risk.What is a proper definition that would help us in our risk management process?
PMWorld360 Professional Template
Download the Professional Risk Register Template
Identify, assess, prioritize, and monitor project risks with a professionally designed Risk Register template. Assign ownership, evaluate probability and impact, track mitigation strategies, and proactively manage project risk throughout the project lifecycle using proven project management best practices. :contentReference[oaicite:0]{index=0}
✔ Fillable PDF format
✔ PMWorld360 professional design
✔ Risk probability & impact tracking
✔ Risk owners & mitigation actions
✔ Supports proactive risk management
✔ Instant digital download
Download the Risk Register Template →
Instant digital download • Fully editable • Professional project management template
Common Risk Formulas
Below are some of the most common risk formulas that I have found or have seen used in organizations:- An <uncertain risk event> could occur due to <definite cause or trigger>, leading to <impact on objectives>. This is also recognized as the Total Economic Impact (TEI) model.
- [Event that has an effect on objectives], caused by [cause(s)] resulting in [consequence(s)] (XSEDE, Nayak, 2018)
- A condition can cause an uncertain outcome and the likely consequences (negative) if it is not managed
