Many project managers using risk registers fail to understand the basic risk concepts and utilize incorrect techniques in preparing risk management plans. Studies have indicated that 81% of organizations believe their risk registers are ineffective at identifying potential risks, and 30% of project failures result from inadequate risk management. In this article at CMS Wire, Norman Marks explains the problems with a risk register and ways to avoid them.
Mistakes to Avoid
Failure to Update
At the start of the project, you document each risk in a risk register. You may even carefully review the risk register each week and determine if any action is required. Remember, there are often internal and external changes that impact all areas of the project, including risks. During the project lifecycle, new threats might appear, or existing risks might change in priority. Therefore, if you fail to keep your risk register updated, it might become ineffective and inaccurate.
Failure to Simplify
If you have a complicated risk register, you will undoubtedly find it challenging to maintain it. Create a risk register that is simple to review, understand, and update.
A Check Box Exercise
Studies have revealed that six out of ten project managers believe that risk identification and documentation have limited or no impact on their overall project plan. Many project managers consider risk register as a check box exercise and fail to properly assess and prioritize risks.
How to Create an Effective Risk Register
“There may be different gradations of ‘failure,’ each with its own level of consequence and each with its own likelihood,” says Marks. Therefore, the effective risk register must document:
- Level of risk
- Type of risk
- Risk accountability
- Probability of risk
- Risk mitigation measures
To capture the above information, you must:
- Follow a systematic process to ensure you are identifying all the potential risks associated with your project.
- Record the details, actions, and updates during the project lifecycle.
- Give your team members accountability for risks.
To read the original article, click on https://www.cmswire.com/information-management/what-is-wrong-with-a-typical-risk-register/.