Managing risk is an essential part of everyday life. When planning a project, creating and maintaining a Risk Log is something we recommend you make an essential component.
It sounds like it should be complicated, right? Wrong! It needn’t be any more complicated than the example I am going to walk you through now, it’s an easy topic, one that anyone who has ever tried to plan a barbeque in Britain will be able to follow.
There are eight columns in the risk log template above:
- Risk – the name of the risk.
- Probability – the likelihood of it happening, 1 = very unlikely, 5 = certain.
- Impact – what will the effect on your project will be, 1 = no real issue caused, 5 = catastrophic, derailing the entire project.
- Risk Score – Probability Score x Impact Score = Risk Score. The lower the better.
- Mitigation – what could you do to manage this risk, either making it less likely to occur or preventing it having such a huge impact?
- Contingency – what will you do if the worst does happen?
- Action Owner – who is responsible for taking action to prevent the risk?
- When – at what point does the Action Owner need to respond?
Our example project is planning a BBQ. So we need to come up with the risks associated and then populate the table. The first risk that sprung to my mind was RAIN!
Rain is a quite a risk, but to prevent it spoiling the fun you can plan when to hold your event carefully to avoid the times of year when it is most likely to occur. You can also hire a marquee (just in case), move indoors or hand out umbrellas to guests as a contingency if the weatherman gets it wrong and it does happen to be raining on the big day.
The next image shows a few more risks at the BBQ and what can be done to manage them.
- A Risk Log can and should be a working document, updated regularly to reflect any changing circumstances.
- Include risks no matter how trivial they seem. One thing often leads to another and sometimes a small thing can trigger a huge unintended consequence.
- Get as many people as possible involved in brainstorming risks to add to the log, it always helps to get a different perspective, they may spot a few things you missed.
Have a go at completing the Risk Log below to see how easy it is.
Get in touch with Active Outcomes if you’d like some more information about risk management. We’d love to chat via Twitter @ActiveOutcomes, email email@example.com, or visit our website at http://www.activeoutcomes.co.uk.