Risk Register

Definition:
A documented record of identified risks, their potential impacts, and the mitigation strategies associated with them.

Key Components:

• Risk Description: Detailed explanation of each identified risk.
• Probability and Impact Ratings: Assessment of how likely a risk is to occur and its potential severity.
• Response Strategy: Action plan to mitigate or manage the risk.

Use Cases/Industries:

• Construction: Tracking material supply delays and their cost impacts.
• Energy Sector: Logging environmental compliance risks in renewable projects.
• Manufacturing: Documenting supply chain vulnerabilities for production planning.

Advantages:

• Centralized Risk Management: Provides a structured approach to handling risks.
• Enhances Decision-Making: Helps prioritize risk response efforts.

Challenges:

• Requires Regular Updates: Needs to be maintained throughout the project lifecycle.
• Can Become Overwhelming: Large projects may have extensive risk logs requiring management.

Related Terms:
Risk Assessment, Contingency Planning, Project Risk Matrix

Example:
An oil refinery expansion project maintained a risk register that tracked construction safety hazards and procurement delays.