All projects have risks, and all decisions and tasks have risks. So, when handling a project, it’s important to take note of these risks and prepare for them in advance.
No project is free of risks, and positive or negative factors can affect a project’s progress or outcome. This is especially true for marketing teams where projects rely on several internal and external factors –from team skills, stakeholder approvals, and technology to market sentiment and trends.
Proactive risk management can equip teams to respond to unplanned situations. It involves identifying, assessing, and addressing risks and creating and including them in the team’s plans. This way, if they do occur, they can be handled with more composure and order. One step to mitigate risk is to track it using a risk register.
What is a Risk Register?
A risk register (also known as a project risk register) is “a central record of current risks and related information for a given scope or organization,” as defined by the Computer Security Resource Center.
Risks are positive or negative events or activities that:
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Can affect project progress or results
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Has the potential to happen but has not happened yet
(Events or activities that have already happened are called Issues –more on this when creating a RAID log.)
Having a risk register is the first step in risk management, and it’s best to prepare one as early as project discovery and planning. As the project progresses, a re-evaluation can be done as part of project monitoring and execution, incorporated into your project methodology of choice. Here are suggested ways to do that:
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Waterfall: Review and update your risk register at the beginning of every phase
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Agile: Review and update your risk register every sprint review
How to Create a Risk Register
Pick Your Tool of Choice
Picking the right tool is essential to your risk register’s usability and effectiveness. A viable tool for this is Workamajig, the project management tool made for effective teams. Workamajig provides customizable project tracking features that sync in real time, allowing for transparency and accessibility for the whole team.
Create Nine Columns
These nine columns would represent each relevant component:
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Risk ID: Logical and unique alphanumerical combinations tied to every risk logged
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Risk Name: A brief and understandable title for the risk logged
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Risk Description: Additional context or background for the risk
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Risk Category: Categorizes which aspect of the project the risk is related to (e.g., budget, schedule, technology, external, etc.)
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Risk Probability: A percentage score of how likely the risk is to happen
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Risk Impact: This can be a score from 1-100 that measures how much the risk would affect the project deliverable and/or process
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Risk Score: Risk Probability x Risk Impact
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Risk Response: How the team intends to manage this risk in case it happens, or how to prevent it from happening
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Risk Owner: The stakeholder accountable for mitigating and/or monitoring the risk
While it’s possible to create these columns plainly, automated formulas and drop-down menus are advised. Risk register templates can also be used to get started more quickly.
Enumerate Risks
Once you have your risk register, go through each project aspect and brainstorm every possible risk. It’s advisable to involve the team and keep ideas flowing. Create a discussion and build on everyone’s input.
Once the brainstorming is finished, filtering can be done to create a more concise list, and then more details, such as descriptions, can be filled in.
Assess Risk
With a reliable team and clear metrics, evaluate each risk's probability and potential project impact. This would result in a prioritized list of risks that need to be considered high priority, medium priority, and low priority.
Write Down Mitigation Plans
Once the risks have been shortlisted and prioritized, the team can allocate its energy to finding mitigation plans for the top-priority risks.
Best Practices for Maintaining a Risk Register
Tools are only as good as the people who use them. Here are ways to maximize the benefits you get from your risk register.
Monitor and Reevaluate Risks
Risk assessment is a crucial part of your risk register, and at different phases of your project, the probability and impact might change. Incorporate updating your risk register and re-evaluating them in your project process.
Involve Stakeholders
As the project progresses, more factors could become involved, opening the team and project to more risks that need to be monitored. Overwhelming the team with too many risks can cause analysis paralysis and hinder progress.
Involve reliable stakeholders in the risk assessment and review process. These stakeholders must have enough expertise to be thorough but also the wisdom to discern if they are valid avenues for spending attention and resources.
Use a Reliable Tool and Template
The tool you choose can dictate how efficient and effective your risk register will be. Things that might need to be considered when picking the right tools are:
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Flexibility: While there are recommended components to a risk register, it’s ideal to customize it according to your project’s needs, team size, industry, and other relevant factors
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Ease of use: A risk register is a living document. The less resistance the team has in using it, the more likely it is to be adapted and embraced
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Visibility: All teams, especially risk owners, must always have access to the latest version of this document.
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Cost: As with all project management tools, cost has to align with the team’s or company’s budget
Keep the Risk Register Accessible
Your risk register is there to provide guidance for all stakeholders in case issues occur. It’s important for everyone involved to have access to it so they can refer to it when needed. Making your risk register hard to find would defeat its purpose and would prevent it from allowing your team to respond to situations with grace and swiftness.
Risk Register Examples
Web Development Project
Social Media Campaign
Market Research
Wrapping Up
Risks are part of every project, so it’s vital for marketing and creative project managers to monitor and manage them. A risk register is essential for teams to stay prepared for what’s to come, making them more flexible and successful in every situation. Use Workamjaig to consolidate project information and communication, ensuring accessibility across all stakeholders.