Introduction
A risk register is a document that records events that might possibly occur and whose occurrence will hinder the successful achievement of the goals and objectives of a particular project (CIO 2012). The register is managed through specific processes and is reviewed as part of the governance of the project at Project and Strategic Board level. Risk registers should be maintained for all contractual activities.
The risk appetite for each activity needs to be determined. This expresses how prepared Justine and Early Engineering, Inc is to accept and manage the risk. The risk elements fall into three categories (Hester, R. E., & Harrison, R. M. 2008).
- Risk elements with low risks hence do not need to be managed.
- Risk elements with high or medium risks and will need to be managed.
- Risk elements with extreme risk and therefore the activity should probably not proceed.
The risk register records details of all the risks that can be identified with the 3 strategic business units: road and bridge, power plants and commercial buildings. The risks associated with each strategy are identified and graded in terms of likelihood of occurring and seriousness of its impact.
The risk register identifies:
- A short description of each risk and its impending consequences.
- Assessed risk grade.
- Factors that may have an effect on the consequences and likelihood of the risk.
- Whether the risk srank is satisfactory.
- Early warning factors and possibly the reporting thresholds.
- Actions and controls that are currently in place to mitigate the risks.
After knowing all the above aspects that a risk register should contain, understanding of the key activity and business processes that exposes Justine and Early Engineering, Inc is necessary. The positive and negative risks associated with the business units should also be understood. During risk identification, consultation with colleagues and other major stakeholders is necessary. Relevant contextual issues should be considered (Hester, R. E., & Harrison, R. M. 2008). During identification, the risks need to be prioritized. The risk register should be brief and to the point. This makes it to quickly convey the information. However, it should be updated on a regular basis.
Risk assessment
Risks are assessed by its probability of occurring (L), its consequences (c), and the general rating (L*C). The probability ranges from almost certain, likely, possible, unlikely and rare and are each accorded a score of 5,4,3,2 and 1 respectively (United States 2009). Consequences include extreme catastrophic, major, significant, minor and insignificant and are each accorded a score of 5,4,3,2 and 1 respectively. The rating is obtained after multiplication of the L & C figures.
Risk registers
References
Hester, R. E., & Harrison, R. M. (2008). Risk assessment and risk management. Cambridge, UK: Royal Society of Chemistry.
How to create a risk register - risk register, risk log, risk management, project management - CIO. (2012.). Retrieved from http://www.cio.com.au/article/401244/how_create_risk_register/
United States (2009). Guidelines for mutagenicity risk assessment: Published on September 24, 1986, Federal Register 51(185):34006-34012. Washington, DC: Risk Assessment Forum, U.S. Environmental Protection Agency.
