Project managers are accustomed to facing risks whenever they undertake a new project. It is their job, however, to find ways to mitigate these risks. For project managers to tackle these situations effectively, they use risk management processes and frameworks. One of the most essential components of a risk management framework is the risk register.
What is a Risk Register System?
A risk register system also referred to as a risk log, can be used to track and deal with issues as they arise in real-time. Project managers create risk register systems at the early stage of a new project to help them identify, assess, and manage risks down to an acceptable level through a review and update process.
How does a Risk Register System work?
As we have described above, the risk register is a logbook used to identify, access and manage risks. It is a part of several risk assessment tools, and the way it works is not complicated. Its purpose is to record every detail of all the risks associated with a project along with the risks identified, the analysis of those risks and proposed plans to mitigate those risks.
Project managers can view the risk management database as a management tool for monitoring the risky aspects of any project within the risk management framework. The project manager is also responsible for ensuring that the risk register is updated as often as necessary.
List of Risk Management Processes
You can expect several risk management processes in a risk register. As a matter of fact, the risks that are recorded in the risk log are the driving factor for these risk management processes as specified in the PMBOK Guide.
Perform Qualitative Risk Analysis Process
This is the process of prioritising risks for additional analysis or action. This is done by estimating the probability of the risk occurring and its likely impact. One of the benefits of this process is that it helps project managers reduce the level of uncertainty in their projects and only focus on high-priority risks.
Perform Quantitative Risk Analysis Process
This process, on the other hand, focuses on analysing the effect of the risks identified in the objectives of your project. While there are several benefits to this process, the most important one is that it produces quantitative risk information that helps in making better decisions. This enables project managers to reduce project uncertainty in their projects.
Plan Risk Response Process
This is the process of enhancing opportunities while reducing threats to project objectives. One of the benefits of this process is that it tackles risks based on priority, thus inserting resources and activities into the overall budget.
Monitor and Control Risk Process
This is the process of executing risk response plans, tracking the risks identified, monitoring all residual risks, and determining new risks. Also, this process helps with evaluating the risk management’s effectiveness across the entire project.
One of the best things project managers can look forward to when it comes to managing their project risks is the ability to use technology. First, technology can be used for the entire risk management process. Beakon’s risk management software, risk assessment tools and risk register system are all part of an all-in-one system that helps top companies remain safe and efficient. Grab a free trial today.