Running a successful business requires lots of time and effort. However, with the help of a Project Risk Register Template, a handy tool to quickly and easily carry out a full risk management process, and Latitude 12, a business management agency providing tailored managed business solutions and services to its clients in remote and regional Australia, you can identify, assess, and treat risks, thus ensure business growth.
So, let’s have a look at the four phases and the 12 key elements included in the Project Risk Register template that will help you in the risk management process:
The Risk Identification Phase
- Risk Category
Of course, first, you need to categorize the risk and put it under the correct category umbrella. In other words, you should determine whether the risk is connected to time, resources, cost, scope, environment, etc.
- Risk Description
Once you put the risk into the correct group, you should provide a brief description about it. Just make sure you are concise and write down only relevant information – no more and no less.
- Risk Identification Number
So, you have different categories to easily group potential issues and risks. But, you may have several risks that fit into the same group. Hence, to easily find and track any risk in the risk register, you should use a unique ID number.
The Risk Analysis Phase
- Project Impact
The risk management process isn’t complete by simply identifying and describing potential risks. Indeed, you should also focus on describing the potential impact the risk can have on the project.
Then, you should calculate the likelihood of the occurrence of the risk. In other words, is the probability that the risk will occur low, medium, or high, which is a qualitative estimation of the risk’s likelihood.
So, you have the impact and likelihood figured out. Now, you should focus on the consequence it will have on the project. By knowing the potential consequences, you will prioritize risks and treat them in accordance.
The Risk Evaluation Phase
- Risk Rank
The magnitude, i.e. the level of the risk, is also needed if you want to carry out a proper risk management process for your business. And, it is very simple. You just need to combine the likelihood and consequence to get the magnitude.
- Risk Trigger
Now you should determine what are the possible triggers that will specify the need for implementing a contingency plan. This will help you act and treat the issue on time.
The Risk Treatment Phase
- Prevention Plan
It’s time to take actions now. Logically, your first efforts would be to prevent the issue and risk from happening. In other words, you should prepare a detailed prevention plan and act upon it.
- Contingency Plan
If the prevention plan doesn’t work, you should always have a prepared contingency plan so that you can act fast and address the risk if it occurs. It will help you reduce the negative impact of the risk if treated on time.
- Risk Owner
Every project has its own manager. So, there should also be a person in charge of the risk management process and for implementation of both the prevention and contingency plans.
- Residual Risk
And, the last element of the Project Risk Register template is the residual risk. In other words, you should assess the risk that remains even after the treatment phase is carried out successfully.
All of the 12 elements mentioned above make the Project Risk Register template such a handy tool for undertaking a comprehensive risk management process. You just need to get in touch with Latitude 12 and achieve your business goals quickly!