Using a Risk Register Template adds structure and consistency to the project risk management process. This readily available document targets each individual risk before it occurs. Both PMBOK and Prince2 assert that a risk register template is a critical component of any successful project. Additionally, you can revisit risks at the end of each project lifecycle phase and assess how well each risk was handled or how the proposed remedies aided in controlling the specific risk.
You should incorporate a risk register from the very beginning of the project planning process. When regularly updated and shared with team members, the risk register serves as a beneficial tool for managing and mitigating risks associated with any project.
Furthermore, using a risk register during the business planning process can help you do the following:
- Provide documentation of risk management strategies
- Rank all potential risks
- Ensure communication with key stakeholders and upper management, should risks occur
- Identify necessary mitigation actions to resolve the risk or its impact
- Forecast and strategically prepare for unavoidable risks
- Bring to light unidentified risks through open communication and team member contributions
- Initiate actions to reduce the probability and potential impact
While a risk register template is incredibly helpful for project owners as they work to identify and combat risks, there are some drawbacks to meticulously pre-planning for risks. Sometimes, doing so can lead to formulaic decision-making and create a false illusion of control over situations. However, not all risks are foreseeable, which can lead to a fallacy of specificity within the project plan. Keep an open mind to ensure these drawbacks don’t affect your project, even as you begin to identify and address risks before they arise.
