What is a risk register?
A risk register is simply a table. It provides a framework for identifying and recording risks. The structure of the table allows for simplified analysis and comparison. Updating and recordkeeping is accommodated.
- Initially identify all uncertainties in the project and the corresponding part of the project that they impact. Identify also the impact during this first run through, focus on identification and not analysis or auxiliary information. Take a look at previous similar projects and research historical information.
- Analysis: Discuss this table of risks with the team and experienced personnel in your company.
- Updating the table to keep up with the current changes in a project.
Why use a risk register instead of a risk matrix?
The risk register provides the PM with a framework to identify, analyze and communicate risks. Because it allows for an unlimited number of risks at any one level of severity or likelihood, it is an improvement on the classic risk matrix. The tabular format allows for a broader analysis of each risk and moves the practitioner towards the quantitative definition of risks and prioritizing. The risk register facilitates all stages of risk management through the project life cycle.
Risk Registers – Quantitative Analysis
This quantitative analysis in a tabular format has a number of advantages.
- It allows for easy comparison, sorting, and review.
- Reporting on progress is facilitated.
- Updating the table is simple.
- The table can contain as many or as few risks as a project portends.
Using Software: RiskMP
This is an example of a more complete risk register. The report was generated by RiskMP. RiskMP is a simple software tool for risk management in construction. The Risk Register is one of the many reports available for export.
Just like we went from paper-based risk matrices in the ’70s to risk registers in using excel in the ’90s, we should be using a software application to capture your risk information. RiskMP helps you manage the data and organize it easily.
Over and above having the standard risk register created for you, it also allows you to pick and choose what columns are relevant to you, and have a customized risk report suitable for your company’s needs.
Since the risk management process built into the software, it will lead you through the creation of the risk register, step by step.
Most importantly, RiskMP addresses the “catch-all” problem of Construction Projects: Communication. RiskMP significantly improves communication between the PM, site, and trades.
Watch our informational video about Risk Registers here: