Risk Register:

• Records identified risks, descriptions, impacts, likelihoods, and mitigation actions
• Key tool in risk management
• May resemble a heat map risk matrix
• Facilitates communication and risk tracking
• Key component of project and business operations

Components of Risk Register

• Risk Description
  • Identifies and describes the risk
  • Clear and concise description
• Risk Impact
  • Probability of risk occurrence
  • Rated on a scale (e.g., numerical or descriptive)
• Risk Outcome
  • Result of the risk if it occurs
  • Related to impact and likelihood
• Risk Level or Threshold
  • Determined by combining the impact and likelihood
  • Prioritizes risks (e.g., high, medium, low)
• Cost
  • Financial impact on the project
  • includes potential expenses if it occurs or the cost of risk mitigation

Risk Tolerance and Risk Appetite

• Risk Tolerance/Risk Acceptance
  • An organization or individual’s willingness to deal with uncertainty in pursuit of their goals
  • Maximum amount of risk they are willing to accept
  • Acceptance without countermeasures
• Risk Appetite
  • Willingness to pursue or retain risk
  • Types
    • Expansionary
    • Conservative
    • Neutral

Key Risk Indicators (KRIs)

• Predictive metrics signaling increasing risk exposure
• Provide early warning of potential risks
• Tied to the organization’s objectives
• Used to monitor risk changes and take proactive steps