What is a Risk Register? The Risk Register records details of all the risks identified at the beginning and during the life of the project, their grading in terms of likelihood of occurring and seriousness of impact on the project, initial plans for mitigating each high level risk, the costs and responsibilities of the prescribed mitigation strategies and subsequent results. It usually includes: a unique identifier for each risk; a description of each risk and how it will affect the project; an assessment of the likelihood it will occur and the possible seriousness/impact if it does occur (low, medium, high); a grading of each risk according to a risk assessment table (refer to Table 1); who is responsible for managing the risk; an outline of proposed mitigation actions (preventative and contingency); and in larger projects, costings for each mitigation strategy. This Register should be maintained throughout the project and will change regularly as existing risks are re-graded in the light of the effectiveness of the mitigation strategy, and new risks are identified. In smaller projects, the Risk Register is often used as the Risk Management Plan. Why would you develop a Risk Register? A Risk Register is developed to: provide a useful tool for managing and reducing the risks identified before and during the project; document risk mitigation strategies being pursued in response to the identified risks and their grading in terms of likelihood and seriousness; provide the Project Sponsor, Steering Committee/senior management with a documented framework from which risk status can be reported; ensure the communication of risk management issues to key stakeholders; provide a mechanism for seeking and acting on feedback to encourage the involvement of the key stakeholders; and identify the mitigation actions required for implementation of the risk management plan and associated costings. When would you develop a Risk Register? Initial risks must be identified and graded according to likelihood and seriousness very early in the Project. This initial risk assessment will form part of the Project Proposal/Brief or Project Business Case for the project. Once the project is approved the Risk Management Plan and Risk Register should be fully developed. In the case of smaller projects the Risk Register may serve both purposes. What you need before you start: Knowledge and understanding of the project. Knowledge and understanding of the Key Stakeholders. Knowledge and understanding of appropriate types of risk management activities, or where to obtain them. Any of the following documents – Project Proposal/Brief, Project Business Case, or Project Business Plan. The Tasmanian Government Project Management Guidelines.
2 Inadequate funding to the project Identified triggers: Funding is redirected; Costs increase (poor quality materials/ inaccurate cost estimates) Budget blow out means cost savings must be identified – ie. reduced output quality, timeframes are extended, outcomes (benefits) will be delayed and/or reduced. M M B No change 15/02/06 Contingency: Re-scope project, focusing on time and resourcing Project Manager TBC TBC N
3 Staff reject new procedures Triggers include Staff don’t participate in training (not prepared for new roles); New procedures not applied (work-arounds still used). Rejection means additional time and resources required to achieve successful implementation - ie. outputs languish; more training is required (additional cost, time delays); potential for ‘falling back into old ways’ (more change mgt required); loss of credibility for project (perception of failure). H H A NEW 15/02/06 Preventative: High level reinforcement of policy changes; Provide opportunity for staff feedback prior to policy/procedure finalisation; Develop Training Plan that allows for repeat attendance (perhaps 2 stage training?); Identify staff ‘champions’ to promote adoption of new procedures (buddy system); Circulate information to staff that promotes how new procedures have improved processes (eg. 10 steps reduced to 4 steps etc); proportion of staff that have successfully completed the training. Sponsor Project Manager Consultant Project Manager Project Manager NA NA NA NA 21/02/06 21/02/06 30/03/06 30/03/06 30/04/06 Y Y N N N