DTU ProjectLab - User contributions [en-gb]

Risk Register analysis

2021-02-28T21:51:12Z

Dorothea Georgiadou: /* How Risk register is used ? */

Developed by Dorothea Georgiadou

In an age where the economic, social, and political environment is constantly shifting, there is an urgent need to study the risks that may threaten the success of a project. It is particularly important to study the risks that may adversely affect the project and lead to events that might have as a consequence the exceeding of the agreed budget and time. For this reason, the risk management planning should identify and describe in detail the potential risks by providing the needed information for the actions that should be done for eliminating their negative impact. The high uncertainty that exists in projects necessitates the use of a management tool that will control the risks. <ref name="Pmi"> Project Mangement Institute. "Practice standard for project risk management." Project Management Institute, 2009. </ref> In this article the risk management framework ‘’Risk register’’ is explained. The risk register is a tool that covers and studies many aspects of risk management processes. More specifically, the aim of this article is to explain how this tool can be used to document the outcomes of the risk management processes. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013, Retrieved from: https://doi.org/10.14256/JCE.722.2012 </ref> The article provides a description of the tool along with the reasons that it should be used. It is a framework that aims to record the information from the processes related to the identification, assessment, responding, and monitoring of potential risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. Finally, the article analyzes along with the benefits also the limitations of this risk management tool.

== Why use Risk Register? ==
In an ever-changing environment, a projects’ success is associated with a high level of uncertainty. In the ''‘Practice Standard for Project Risk Management’'', risk management is an approach that plays a vital role in the strategic and decision-making processes since adjustments in the project management planning can be done after the identification of the projects’ challenges. The risk register framework is used to support the risk management process in order to eliminate the negative impact that the various threats might have on a project. Threats could come from the external and internal environment of the company. The external risks are associated with the economic, social, political, and technological environment, while the internal threats include risks that are related to human actions and estimations. <ref name="Pmi" /> <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. For example, it is possible for people to make wrong estimations because of inexperience and underestimation of some threats. This high level of uncertainty makes it increasingly necessary to use a model that assists the risk management process in a more effective way. <ref name="Pmi" /> <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>.
=== The role of Risk Register ===
In ''‘Practice Standard for Project Risk Management’'', the risk register is defined as the framework that is used in project risk management for the documentation of the identified risks. It records all the needed information that will be the steppingstone to overcome the risks that might menace projects' success. <ref name="Pmi" /> It is worth noting that based on ''‘PRINCE2’'', the risks are divided into threats and opportunities. Threats are the risks that could have negative consequences for the project, while opportunities could bring positive outcomes to the company. <ref name="PRINCE"> Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017) Retrieved from: https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=4863041</ref> The article is mainly focused on the documentation of the various threats in the risk register. The importance of the tool is highlighted in the fact that it can assist project managers with tackling potential threats and to have a better and clearer overview of the internal and external risks that might negatively affect the success of the project. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref> The aim of the risk register is to record information related to the identification, assessment, evaluation of importance, and managing of the potential risks. <ref name="Pmi" /> <ref name="PRINCE" /> More specifically, the uncertainty that exists in projects makes it necessary to use a model that provides various information for the events that could threaten the projects. <ref name="Pmi" />

In the ''‘PMBOK guide ’ ''it is outlined that the tool risk register can be used in different phases of a project. Firstly, it can be used at a very early stage of a project in order to provide information for the risks that might be a threat. Secondly, as the project continues, new threats are recorded and documented in the risk register. In other words, it is used to update the new risks and inform the risk owners how they should monitor the new threats. Finally, it documents all the risks that have been recorded after the completion of a project. <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>

=== Elements of Risk Register===

As can be seen in figure 1, the implementation of the risk register model follows four processes. Firstly, the risks have to be identified. Secondly, they have to be assessed based on their impact and probability. After risk assessment, it is important to define the actions that must be taken, in order to manage the risks. The final process of the risk register model follows, deals with the ways the risks can be monitored. <ref name="Pmi" /> <ref name="ot" /> <ref name="PRINCE"/> The outcome of the previously mentioned processes is the input for the risk register framework.

[[File:Screenshot 2021-02-25 221935.png‎|center|thumb|310px|Figure 1: Implementation steps of Risk Register (own figure, based on <ref name="Pmi" />,<ref name="ot" /> and <ref name="PRINCE"/>) ]]

Risk register has the form of a table where each column represents different characteristics of the potential risks.<ref name="latvia"> Project Risk Register Analysis Based on the Theoretical Analysis of Project Management Notion of Risk, Juris Uzulāns, University of Latvia, 2016 Retrieved from: https://doi.org/10.1515/eb-2016-0020 </ref> In order to start building the risk register the first step is the identification of the risks. Once the potential threats are known it is vital to provide a brief description for each one. <ref name="Pmi" /> This helps the project managers not only to clarify the risks but also to understand why they are threatening the project’s success. Secondly, for the assessment of the risks, their probability and impact on the project are examined. Furthermore, in'' ‘Practice Standard for Project Risk Management’'' it is stated that the evaluation of the risk is depending on their impact and their frequency to happen.<ref name="Pmi" /> For instance, the risks that have high impact and probability to occur, are risks with higher importance than the risks with low frequency and impact. The identification of the risks’ importance is an essential element for project managers to know which risks are needed more attention and time for setting up a plan in order to overcome them. <ref name="Pmi" /> Furthermore, based on the ''‘PMBOK guide’'' the risk register also includes information about the person who must tackle every risk and the actions that he has to take to eliminate its negative consequences. <ref name="ot" /> Finally, the risks should be monitored in order to prevent unexpected events. <ref name="Pmi" /> The above elements are demanding high attention as they are mainly focused on dominant areas of the risk management process which are the identification of the threats, the evaluation of their importance, the course of action that should be taken to respond and control them. Figure 2 illustrates the risk register table based on the discussion above.

[[File:table1111.png‎|center|thumb|600px|Figure 2: Risk Register table (own figure, based on the discussion above)]]

==How Risk Register is used ? ==
In order to have an in-depth understanding of the risk register, it is of utmost importance to analyse the way that it can be used. The tool aims to eliminate the negative impacts of the various threats by identifying, assessing, evaluating, and monitoring them. The following sections provide a guidance on how the four processes of risk register can be implemented.
=== 1. How to identify the risks ===
As a first step, the risks have to be identified by using the right techniques. Once this is complete, a short description of the risks that have been identified through the risk management process is provided.

''' 1.1 Risk identification '''

As it is quoted in ''‘Practice Standard for Project Risk Management’'', ''‘’ A risk cannot be managed unless it is first identified.’’'' <ref name="Pmi" /> (p.25) The identified risks are the first information that will be used in the risk register. <ref name="Pmi" /> <ref name="ot" /> It is worth noting that the risk identification process is continuous because as time passes, the number of information increases. In other words, new risks will become knowable by repeating the risk identification process in different phases of a project. <ref name="Pmi" />

In this article, three methods are used for the risk identification process and all of them are following the ''‘Practice Standard for Project Risk Management’'' <ref name="Pmi" /> (p.28):

*'''''Historical review''''': This technique is used as an analysis of events that happened in the past. When this method is used it is vital to make sure that the events that are under observation are correlated with risks that happened before in this project or in different projects from the same or different company. This method demands attention as there is the risk to compare data and risks from projects that are not closely connected to the project.
* '''''Current Assessment''''': In this method, the risk identification process is focused on analysing the project’s uncertainty based on the information that is known in this specific period of time.
*''''' Creativity Techniques''''': This approach is based on the creativity of the people who participate in the project. To be more specific, stakeholders have the chance to work individually or with other people in order to identify risks by using creative methods and thinking outside of the box.

All of the techniques mentioned above have both strong points and limitations. This means that if they are used separately, they might lead to inadequate results. Thus, the combination of the three techniques can guarantee more accurate results. <ref name="Pmi" /> (p.28)

''' 1.2 Risk description'''

The description of the identified risks is a very important component of the risk identification process. It is a way to make sure that the risks are well communicated and understood among all the stakeholders. <ref name="ppp"> Guide to Using a Risk Register, Stephanie Ray, https://www.projectmanager.com/blog/guide-using-risk-register Accessed on 19/02/2020 </ref> For instance, in a construction problem, it is identified that a potential risk could be a shock in the economy. A potential explanation is that a shock in the economy could increase the price of raw materials and as a result the project might exceed the agreed budget. As it could be observed, the description of this risk could give a better insight into what this change might impact.

=== 2. How to assess the risks ===
The assessment of the various risks could be applied by using two methods, namely, the qualitative and quantitative risk analysis. Both methods are used to evaluate risks’ importance to the project. This includes an analysis of the probability that each risk has to occur and the impact that they might have on the project. <ref name="Pmi" /> In this article, the assessment of the identified risks is following the ''‘’ Practice Standard for Project Risk Management‘’ '' and the''‘’ PMBOK guide ‘’ ''.

* '''Qualitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

In qualitative risk analysis, the risks are evaluated and ranked based on their probability, impact, and some other characteristics that have been defined before the implementation of the analysis. This analysis is implemented regularly as new threats might need to be identified. The basic components of qualitative risk analysis are the high or low probability of a risk to happen and the consequences that it might have in ''‘’ one or more project objectives such as schedule, cost, quality, or performance.’’'' <ref name="ot" /> (p.423) Additionally, in qualitative risk analysis the risks can be grouped based on various criteria. For example, they can be grouped by risks that might exceed projects’ deadlines. This way, the project management team could monitor the risks in a more effective way since not only they will know the project areas they need to pay more attention to, but they will also have a quicker response managing the threats of the several categories.

* '''Quantitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

The quantitative risk analysis is used to calculate risks’ effects on the project. While this numerical analysis is not considered vital for all the projects, it provides more pragmatistic results. The implementation of the quantitative risk analysis follows on from the qualitative risk analysis. This could be explained by the fact that in the qualitative risk analysis the risks are already prioritized and thus the most vital threats are recognized and could be calculated. The impact and the probability are calculated, and the risk register table can be updated with numerical results.

=== 3. How to respond to the risks ===

It is of utmost importance to tackle the identified risks once they have been assessed. In order to do so, it is necessary to perform a risk management plan which will include the actions for dealing with the risks and the person who is responsible to tackle them. As a first step the risks should be known by all the stakeholders. Every potential risk is assigned to the right people. These people are called risk owners and they are responsible with controlling and finding solutions for the risks they are assigned with. The risks could harm the project in various ways and for this reason, there should be a plan with responses for all of them.<ref name="Pmi" /> <ref name="ot" /> In the ''‘Practice Standard for Project Risk Management’'' it is written that ''’’ the planning entails agreeing upon the actions to be taken and the potential changes to the budget, schedule, resources, and scope which these actions might cause.’’'' <ref name="Pmi" /> (p.43) Furthermore, the actions that have to be taken for every risk should be developed at the very early stage of its identification. In other words, it is integral to have the strategies and responses in advance so that project’s time schedule will change as little as possible. <ref name="Pmi" /> The risk register includes all the responses and actions on its table. Once new risks are identified risk register is updated with new strategies that the risk owner has to follow. Moreover, throughout the lifecycle of a project, it is possible to make adjustments and corrections to the plans of the previously identified risks. <ref name="ppp" />

=== 4. How to monitor the risks ===

Risk monitoring is the last process that needs to be implemented in order to fill in the risk register table. This final step is as important as the three steps mentioned above. Risk should be monitored throughout the life cycle of a project. It is a continuous process that includes the actions that have to be taken in order to control not only the risks that already have been identified but also the new threats that have to be tamed. <ref name="Pmi" />. <ref name="ot" /> Additionally, risk monitoring is used to certify that all the risk responses are taken place when there is a need for action. This is a way to appraise the effectiveness of the responses and the risk owner in the risk management process. <ref name="Pmi" /> The process starts by checking the risk register table. The table should include the appropriate responses for every risk, otherwise, it has to be updated with the new actions that have to be taken.<ref name="Pmi" /> Moreover, it is important for the new actions and changes to be well communicated to the stakeholders and to the people responsible for that specific risks. The number of information varies at the different stages of a project. More information is available to the project managers as the project continues its processes, which means that changes can be made in the risk register. These changes will be defined during the monitoring process and will be updated and documented in the risk register by providing new information for the actions that have to be changed. <ref name="Pmi" />

In this article, three techniques are analyzed for controlling the risks. These techniques are analyzed in the ''‘PMBOK guide ’'' <ref name="ot" /> (p.456-457) :

* '''Data analysis''': This technique is used to ensure that the reserves of the project are enough to not threaten its budget and the deadlines. <ref name="ot" /> More specifically, this analysis is checking if the reserves that a project has as a backup is enough to ensure that it will have the resources to manage an unexpected event that will make its budget and time exceed the agreed limits. <ref name="Pmi" />

* '''Audits''': This method applied in order to evaluate the performance of the processes included in the risk management and hence they are recorded in the risk register. It is worth noting that this way of monitoring risks can be conducted during project meetings when the project team examines the risks. <ref name="ot" />

* '''Meetings''': During meetings, the project management team can evaluate the various risks. This is a vital process that examines the overall process of risk management planning. More specifically, the meeting can ensure that all the stakeholders have a clear overview of the risks that need to be tackled. Furthermore, it is possible that some of the identified risks happened in the past, and through the meeting, the project management team can communicate the learning outcomes and mistakes that they should avoid in the future. <ref name="ot" />

After these processes, the risk register framework is updated with the new data in order to assist the project management team with the risk management process.

==Reflections==
While many positive outcomes can arise from the use of the risk register framework, there are also some limitations that are worth mentioning. In this section, the advantages and limitations of the risk register framework are discussed.
=== Advantages ===
The risk register is used to document information about the various risks that have been identified not only at the very early stages but also throughout the whole lifecycle of the project. This is an extremely beneficial characteristic of the tool that can be used for the assessment of a project's performance as well as for the strategic and decision-making processes that are related to risk management. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> More specifically, as the project is developing, the amount of gathered information is growing which means that new risks will be identified to threaten the project's success. The risk register table is storing the information from the risks that already have been identified and evaluated, and once new treats have been found, the table is expanded with the new data. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> This could be vital for the overall success of the project since the new risk could be well communicated among the stakeholders and thus they will be informed for the new actions they have to take in order to eliminate the negative impact of the threats. Additionally, the table includes information that is the output of the qualitative risk analysis. <ref name="Pmi" /> <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref> In other words, in the qualitative analysis, it is examined how possible is for a risk to take place and the impact that it will have on the project. This analysis is used to prioritize the risks based on their importance. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> Once the risks are ranked, the stakeholders are informed of the threats that they have to pay more attention to. This means that they might have to spend more time planning a strategy around these risks as they will have a higher impact. Finally, the risk register is an advantageous tool for complex projects. When a project is very complex, it's important to use tools that could break down the planning processes. Risk register, due to its structure, provides the needed information for every risk from the moment it is identified. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref>

=== Limitations ===
The identified risks are listed based on the critical way of thinking of the people who are associated with the risk evaluation. This could be a limitation since the results on the risk register table might reflect the personal opinion of the people who implemented it and not the reality.<ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref> <ref name="fd"> Why risk registers don't do enough to help you manage risks, https://www.civilsociety.co.uk/finance/why-risk-registers-don-t-do-enough-to-help-you-manage-risks.html, Accessed on 22/02/2020 </ref> Moreover, the development of the risk register table requires a lot of time in order to insert the data from the four processes. Apart from that since the table is updated when changes are made either to the list of the identified risks or to the actions that have to be taken, it is possible that mistakes might occur when the new data are imported. Hence, the implementation of the documented results of the risk register seeks attention in order to avoid mistakes. However, the risk register is more than important when it comes to analysing the risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> This means that even though it is a time-consuming process, the outcomes of the tool can prevent threats that otherwise could have a negative impact on the project.

It is worth noting, that ignoring the limitations of the risk management tool could have a negative impact on the project. Nevertheless, it is a very important tool that should be applied in the risk management processes most or all of the time.

==Annotated bibliography==
* '' "Practice standard for project risk management." Project Management Institute, 2009.''
This book is based on the PMBOK Guide– Fourth Edition. It is a book about the risk management processes that a project has to follow. It analyses the techniques for the identification, assessment, responding, and controlling of the risks. In this book, the reader can find information for the risk register model and how it is involved in all the previously mentioned processes. Although the book provides many details on how to manage risks, it does not illustrate the risk register table. For this reason, the visualization of the table in this article is based on the theoretical outcomes of the book and not on the graphical illustrations included in it.

* ''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017)''
This book is focused on how to manage projects based on PRINCE2 principles. It describes the activities that a project needs based on its implementation stage. Risks analysis is also explained in one of the chapters of the book. In this book, the various stages of the risk management process are explained by providing the needing theory and figures. For example, the article's figure 1 is inspired by one of the illustrations of the book. However, the risk register model is also not illustrated in one of the pages of the book and that could be considered as a negative point.

* ''Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017)''
The book A guide to the Project Management Body of Knowledge provides detailed information on how to manage projects. The risk register framework is analyzed in the chapters of the book by providing information on the usage of the tool in the various processes of risk management. This book is a very useful guide for project management planning. It provides many details for the implementation and organization of projects.

==References==
<references/>

Risk Register analysis

2021-02-28T21:50:54Z

Dorothea Georgiadou: /* Why use risk register? */

Developed by Dorothea Georgiadou

In an age where the economic, social, and political environment is constantly shifting, there is an urgent need to study the risks that may threaten the success of a project. It is particularly important to study the risks that may adversely affect the project and lead to events that might have as a consequence the exceeding of the agreed budget and time. For this reason, the risk management planning should identify and describe in detail the potential risks by providing the needed information for the actions that should be done for eliminating their negative impact. The high uncertainty that exists in projects necessitates the use of a management tool that will control the risks. <ref name="Pmi"> Project Mangement Institute. "Practice standard for project risk management." Project Management Institute, 2009. </ref> In this article the risk management framework ‘’Risk register’’ is explained. The risk register is a tool that covers and studies many aspects of risk management processes. More specifically, the aim of this article is to explain how this tool can be used to document the outcomes of the risk management processes. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013, Retrieved from: https://doi.org/10.14256/JCE.722.2012 </ref> The article provides a description of the tool along with the reasons that it should be used. It is a framework that aims to record the information from the processes related to the identification, assessment, responding, and monitoring of potential risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. Finally, the article analyzes along with the benefits also the limitations of this risk management tool.

== Why use Risk Register? ==
In an ever-changing environment, a projects’ success is associated with a high level of uncertainty. In the ''‘Practice Standard for Project Risk Management’'', risk management is an approach that plays a vital role in the strategic and decision-making processes since adjustments in the project management planning can be done after the identification of the projects’ challenges. The risk register framework is used to support the risk management process in order to eliminate the negative impact that the various threats might have on a project. Threats could come from the external and internal environment of the company. The external risks are associated with the economic, social, political, and technological environment, while the internal threats include risks that are related to human actions and estimations. <ref name="Pmi" /> <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. For example, it is possible for people to make wrong estimations because of inexperience and underestimation of some threats. This high level of uncertainty makes it increasingly necessary to use a model that assists the risk management process in a more effective way. <ref name="Pmi" /> <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>.
=== The role of Risk Register ===
In ''‘Practice Standard for Project Risk Management’'', the risk register is defined as the framework that is used in project risk management for the documentation of the identified risks. It records all the needed information that will be the steppingstone to overcome the risks that might menace projects' success. <ref name="Pmi" /> It is worth noting that based on ''‘PRINCE2’'', the risks are divided into threats and opportunities. Threats are the risks that could have negative consequences for the project, while opportunities could bring positive outcomes to the company. <ref name="PRINCE"> Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017) Retrieved from: https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=4863041</ref> The article is mainly focused on the documentation of the various threats in the risk register. The importance of the tool is highlighted in the fact that it can assist project managers with tackling potential threats and to have a better and clearer overview of the internal and external risks that might negatively affect the success of the project. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref> The aim of the risk register is to record information related to the identification, assessment, evaluation of importance, and managing of the potential risks. <ref name="Pmi" /> <ref name="PRINCE" /> More specifically, the uncertainty that exists in projects makes it necessary to use a model that provides various information for the events that could threaten the projects. <ref name="Pmi" />

In the ''‘PMBOK guide ’ ''it is outlined that the tool risk register can be used in different phases of a project. Firstly, it can be used at a very early stage of a project in order to provide information for the risks that might be a threat. Secondly, as the project continues, new threats are recorded and documented in the risk register. In other words, it is used to update the new risks and inform the risk owners how they should monitor the new threats. Finally, it documents all the risks that have been recorded after the completion of a project. <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>

=== Elements of Risk Register===

As can be seen in figure 1, the implementation of the risk register model follows four processes. Firstly, the risks have to be identified. Secondly, they have to be assessed based on their impact and probability. After risk assessment, it is important to define the actions that must be taken, in order to manage the risks. The final process of the risk register model follows, deals with the ways the risks can be monitored. <ref name="Pmi" /> <ref name="ot" /> <ref name="PRINCE"/> The outcome of the previously mentioned processes is the input for the risk register framework.

[[File:Screenshot 2021-02-25 221935.png‎|center|thumb|310px|Figure 1: Implementation steps of Risk Register (own figure, based on <ref name="Pmi" />,<ref name="ot" /> and <ref name="PRINCE"/>) ]]

Risk register has the form of a table where each column represents different characteristics of the potential risks.<ref name="latvia"> Project Risk Register Analysis Based on the Theoretical Analysis of Project Management Notion of Risk, Juris Uzulāns, University of Latvia, 2016 Retrieved from: https://doi.org/10.1515/eb-2016-0020 </ref> In order to start building the risk register the first step is the identification of the risks. Once the potential threats are known it is vital to provide a brief description for each one. <ref name="Pmi" /> This helps the project managers not only to clarify the risks but also to understand why they are threatening the project’s success. Secondly, for the assessment of the risks, their probability and impact on the project are examined. Furthermore, in'' ‘Practice Standard for Project Risk Management’'' it is stated that the evaluation of the risk is depending on their impact and their frequency to happen.<ref name="Pmi" /> For instance, the risks that have high impact and probability to occur, are risks with higher importance than the risks with low frequency and impact. The identification of the risks’ importance is an essential element for project managers to know which risks are needed more attention and time for setting up a plan in order to overcome them. <ref name="Pmi" /> Furthermore, based on the ''‘PMBOK guide’'' the risk register also includes information about the person who must tackle every risk and the actions that he has to take to eliminate its negative consequences. <ref name="ot" /> Finally, the risks should be monitored in order to prevent unexpected events. <ref name="Pmi" /> The above elements are demanding high attention as they are mainly focused on dominant areas of the risk management process which are the identification of the threats, the evaluation of their importance, the course of action that should be taken to respond and control them. Figure 2 illustrates the risk register table based on the discussion above.

[[File:table1111.png‎|center|thumb|600px|Figure 2: Risk Register table (own figure, based on the discussion above)]]

==How Risk register is used ? ==
In order to have an in-depth understanding of the risk register, it is of utmost importance to analyse the way that it can be used. The tool aims to eliminate the negative impacts of the various threats by identifying, assessing, evaluating, and monitoring them. The following sections provide a guidance on how the four processes of risk register can be implemented.
=== 1. How to identify the risks ===
As a first step, the risks have to be identified by using the right techniques. Once this is complete, a short description of the risks that have been identified through the risk management process is provided.

''' 1.1 Risk identification '''

As it is quoted in ''‘Practice Standard for Project Risk Management’'', ''‘’ A risk cannot be managed unless it is first identified.’’'' <ref name="Pmi" /> (p.25) The identified risks are the first information that will be used in the risk register. <ref name="Pmi" /> <ref name="ot" /> It is worth noting that the risk identification process is continuous because as time passes, the number of information increases. In other words, new risks will become knowable by repeating the risk identification process in different phases of a project. <ref name="Pmi" />

In this article, three methods are used for the risk identification process and all of them are following the ''‘Practice Standard for Project Risk Management’'' <ref name="Pmi" /> (p.28):

*'''''Historical review''''': This technique is used as an analysis of events that happened in the past. When this method is used it is vital to make sure that the events that are under observation are correlated with risks that happened before in this project or in different projects from the same or different company. This method demands attention as there is the risk to compare data and risks from projects that are not closely connected to the project.
* '''''Current Assessment''''': In this method, the risk identification process is focused on analysing the project’s uncertainty based on the information that is known in this specific period of time.
*''''' Creativity Techniques''''': This approach is based on the creativity of the people who participate in the project. To be more specific, stakeholders have the chance to work individually or with other people in order to identify risks by using creative methods and thinking outside of the box.

All of the techniques mentioned above have both strong points and limitations. This means that if they are used separately, they might lead to inadequate results. Thus, the combination of the three techniques can guarantee more accurate results. <ref name="Pmi" /> (p.28)

''' 1.2 Risk description'''

The description of the identified risks is a very important component of the risk identification process. It is a way to make sure that the risks are well communicated and understood among all the stakeholders. <ref name="ppp"> Guide to Using a Risk Register, Stephanie Ray, https://www.projectmanager.com/blog/guide-using-risk-register Accessed on 19/02/2020 </ref> For instance, in a construction problem, it is identified that a potential risk could be a shock in the economy. A potential explanation is that a shock in the economy could increase the price of raw materials and as a result the project might exceed the agreed budget. As it could be observed, the description of this risk could give a better insight into what this change might impact.

=== 2. How to assess the risks ===
The assessment of the various risks could be applied by using two methods, namely, the qualitative and quantitative risk analysis. Both methods are used to evaluate risks’ importance to the project. This includes an analysis of the probability that each risk has to occur and the impact that they might have on the project. <ref name="Pmi" /> In this article, the assessment of the identified risks is following the ''‘’ Practice Standard for Project Risk Management‘’ '' and the''‘’ PMBOK guide ‘’ ''.

* '''Qualitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

In qualitative risk analysis, the risks are evaluated and ranked based on their probability, impact, and some other characteristics that have been defined before the implementation of the analysis. This analysis is implemented regularly as new threats might need to be identified. The basic components of qualitative risk analysis are the high or low probability of a risk to happen and the consequences that it might have in ''‘’ one or more project objectives such as schedule, cost, quality, or performance.’’'' <ref name="ot" /> (p.423) Additionally, in qualitative risk analysis the risks can be grouped based on various criteria. For example, they can be grouped by risks that might exceed projects’ deadlines. This way, the project management team could monitor the risks in a more effective way since not only they will know the project areas they need to pay more attention to, but they will also have a quicker response managing the threats of the several categories.

* '''Quantitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

The quantitative risk analysis is used to calculate risks’ effects on the project. While this numerical analysis is not considered vital for all the projects, it provides more pragmatistic results. The implementation of the quantitative risk analysis follows on from the qualitative risk analysis. This could be explained by the fact that in the qualitative risk analysis the risks are already prioritized and thus the most vital threats are recognized and could be calculated. The impact and the probability are calculated, and the risk register table can be updated with numerical results.

=== 3. How to respond to the risks ===

It is of utmost importance to tackle the identified risks once they have been assessed. In order to do so, it is necessary to perform a risk management plan which will include the actions for dealing with the risks and the person who is responsible to tackle them. As a first step the risks should be known by all the stakeholders. Every potential risk is assigned to the right people. These people are called risk owners and they are responsible with controlling and finding solutions for the risks they are assigned with. The risks could harm the project in various ways and for this reason, there should be a plan with responses for all of them.<ref name="Pmi" /> <ref name="ot" /> In the ''‘Practice Standard for Project Risk Management’'' it is written that ''’’ the planning entails agreeing upon the actions to be taken and the potential changes to the budget, schedule, resources, and scope which these actions might cause.’’'' <ref name="Pmi" /> (p.43) Furthermore, the actions that have to be taken for every risk should be developed at the very early stage of its identification. In other words, it is integral to have the strategies and responses in advance so that project’s time schedule will change as little as possible. <ref name="Pmi" /> The risk register includes all the responses and actions on its table. Once new risks are identified risk register is updated with new strategies that the risk owner has to follow. Moreover, throughout the lifecycle of a project, it is possible to make adjustments and corrections to the plans of the previously identified risks. <ref name="ppp" />

=== 4. How to monitor the risks ===

Risk monitoring is the last process that needs to be implemented in order to fill in the risk register table. This final step is as important as the three steps mentioned above. Risk should be monitored throughout the life cycle of a project. It is a continuous process that includes the actions that have to be taken in order to control not only the risks that already have been identified but also the new threats that have to be tamed. <ref name="Pmi" />. <ref name="ot" /> Additionally, risk monitoring is used to certify that all the risk responses are taken place when there is a need for action. This is a way to appraise the effectiveness of the responses and the risk owner in the risk management process. <ref name="Pmi" /> The process starts by checking the risk register table. The table should include the appropriate responses for every risk, otherwise, it has to be updated with the new actions that have to be taken.<ref name="Pmi" /> Moreover, it is important for the new actions and changes to be well communicated to the stakeholders and to the people responsible for that specific risks. The number of information varies at the different stages of a project. More information is available to the project managers as the project continues its processes, which means that changes can be made in the risk register. These changes will be defined during the monitoring process and will be updated and documented in the risk register by providing new information for the actions that have to be changed. <ref name="Pmi" />

In this article, three techniques are analyzed for controlling the risks. These techniques are analyzed in the ''‘PMBOK guide ’'' <ref name="ot" /> (p.456-457) :

* '''Data analysis''': This technique is used to ensure that the reserves of the project are enough to not threaten its budget and the deadlines. <ref name="ot" /> More specifically, this analysis is checking if the reserves that a project has as a backup is enough to ensure that it will have the resources to manage an unexpected event that will make its budget and time exceed the agreed limits. <ref name="Pmi" />

* '''Audits''': This method applied in order to evaluate the performance of the processes included in the risk management and hence they are recorded in the risk register. It is worth noting that this way of monitoring risks can be conducted during project meetings when the project team examines the risks. <ref name="ot" />

* '''Meetings''': During meetings, the project management team can evaluate the various risks. This is a vital process that examines the overall process of risk management planning. More specifically, the meeting can ensure that all the stakeholders have a clear overview of the risks that need to be tackled. Furthermore, it is possible that some of the identified risks happened in the past, and through the meeting, the project management team can communicate the learning outcomes and mistakes that they should avoid in the future. <ref name="ot" />

After these processes, the risk register framework is updated with the new data in order to assist the project management team with the risk management process.

==Reflections==
While many positive outcomes can arise from the use of the risk register framework, there are also some limitations that are worth mentioning. In this section, the advantages and limitations of the risk register framework are discussed.
=== Advantages ===
The risk register is used to document information about the various risks that have been identified not only at the very early stages but also throughout the whole lifecycle of the project. This is an extremely beneficial characteristic of the tool that can be used for the assessment of a project's performance as well as for the strategic and decision-making processes that are related to risk management. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> More specifically, as the project is developing, the amount of gathered information is growing which means that new risks will be identified to threaten the project's success. The risk register table is storing the information from the risks that already have been identified and evaluated, and once new treats have been found, the table is expanded with the new data. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> This could be vital for the overall success of the project since the new risk could be well communicated among the stakeholders and thus they will be informed for the new actions they have to take in order to eliminate the negative impact of the threats. Additionally, the table includes information that is the output of the qualitative risk analysis. <ref name="Pmi" /> <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref> In other words, in the qualitative analysis, it is examined how possible is for a risk to take place and the impact that it will have on the project. This analysis is used to prioritize the risks based on their importance. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> Once the risks are ranked, the stakeholders are informed of the threats that they have to pay more attention to. This means that they might have to spend more time planning a strategy around these risks as they will have a higher impact. Finally, the risk register is an advantageous tool for complex projects. When a project is very complex, it's important to use tools that could break down the planning processes. Risk register, due to its structure, provides the needed information for every risk from the moment it is identified. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref>

=== Limitations ===
The identified risks are listed based on the critical way of thinking of the people who are associated with the risk evaluation. This could be a limitation since the results on the risk register table might reflect the personal opinion of the people who implemented it and not the reality.<ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref> <ref name="fd"> Why risk registers don't do enough to help you manage risks, https://www.civilsociety.co.uk/finance/why-risk-registers-don-t-do-enough-to-help-you-manage-risks.html, Accessed on 22/02/2020 </ref> Moreover, the development of the risk register table requires a lot of time in order to insert the data from the four processes. Apart from that since the table is updated when changes are made either to the list of the identified risks or to the actions that have to be taken, it is possible that mistakes might occur when the new data are imported. Hence, the implementation of the documented results of the risk register seeks attention in order to avoid mistakes. However, the risk register is more than important when it comes to analysing the risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> This means that even though it is a time-consuming process, the outcomes of the tool can prevent threats that otherwise could have a negative impact on the project.

It is worth noting, that ignoring the limitations of the risk management tool could have a negative impact on the project. Nevertheless, it is a very important tool that should be applied in the risk management processes most or all of the time.

==Annotated bibliography==
* '' "Practice standard for project risk management." Project Management Institute, 2009.''
This book is based on the PMBOK Guide– Fourth Edition. It is a book about the risk management processes that a project has to follow. It analyses the techniques for the identification, assessment, responding, and controlling of the risks. In this book, the reader can find information for the risk register model and how it is involved in all the previously mentioned processes. Although the book provides many details on how to manage risks, it does not illustrate the risk register table. For this reason, the visualization of the table in this article is based on the theoretical outcomes of the book and not on the graphical illustrations included in it.

* ''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017)''
This book is focused on how to manage projects based on PRINCE2 principles. It describes the activities that a project needs based on its implementation stage. Risks analysis is also explained in one of the chapters of the book. In this book, the various stages of the risk management process are explained by providing the needing theory and figures. For example, the article's figure 1 is inspired by one of the illustrations of the book. However, the risk register model is also not illustrated in one of the pages of the book and that could be considered as a negative point.

* ''Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017)''
The book A guide to the Project Management Body of Knowledge provides detailed information on how to manage projects. The risk register framework is analyzed in the chapters of the book by providing information on the usage of the tool in the various processes of risk management. This book is a very useful guide for project management planning. It provides many details for the implementation and organization of projects.

==References==
<references/>

Risk Register analysis

2021-02-28T21:45:03Z

Dorothea Georgiadou: /* Why use risk register? */

Developed by Dorothea Georgiadou

In an age where the economic, social, and political environment is constantly shifting, there is an urgent need to study the risks that may threaten the success of a project. It is particularly important to study the risks that may adversely affect the project and lead to events that might have as a consequence the exceeding of the agreed budget and time. For this reason, the risk management planning should identify and describe in detail the potential risks by providing the needed information for the actions that should be done for eliminating their negative impact. The high uncertainty that exists in projects necessitates the use of a management tool that will control the risks. <ref name="Pmi"> Project Mangement Institute. "Practice standard for project risk management." Project Management Institute, 2009. </ref> In this article the risk management framework ‘’Risk register’’ is explained. The risk register is a tool that covers and studies many aspects of risk management processes. More specifically, the aim of this article is to explain how this tool can be used to document the outcomes of the risk management processes. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013, Retrieved from: https://doi.org/10.14256/JCE.722.2012 </ref> The article provides a description of the tool along with the reasons that it should be used. It is a framework that aims to record the information from the processes related to the identification, assessment, responding, and monitoring of potential risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. Finally, the article analyzes along with the benefits also the limitations of this risk management tool.

== Why use risk register? ==
In an ever-changing environment, a projects’ success is associated with a high level of uncertainty. In the ''‘Practice Standard for Project Risk Management’'', risk management is an approach that plays a vital role in the strategic and decision-making processes since adjustments in the project management planning can be done after the identification of the projects’ challenges. The risk register framework is used to support the risk management process in order to eliminate the negative impact that the various threats might have on a project. Threats could come from the external and internal environment of the company. The external risks are associated with the economic, social, political, and technological environment, while the internal threats include risks that are related to human actions and estimations. <ref name="Pmi" /> <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. For example, it is possible for people to make wrong estimations because of inexperience and underestimation of some threats. This high level of uncertainty makes it increasingly necessary to use a model that assists the risk management process in a more effective way. <ref name="Pmi" /> <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>.
=== The role of Risk Register ===
In ''‘Practice Standard for Project Risk Management’'', the risk register is defined as the framework that is used in project risk management for the documentation of the identified risks. It records all the needed information that will be the steppingstone to overcome the risks that might menace projects' success. <ref name="Pmi" /> It is worth noting that based on ''‘PRINCE2’'', the risks are divided into threats and opportunities. Threats are the risks that could have negative consequences for the project, while opportunities could bring positive outcomes to the company. <ref name="PRINCE"> Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017) Retrieved from: https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=4863041</ref> The article is mainly focused on the documentation of the various threats in the risk register. The importance of the tool is highlighted in the fact that it can assist project managers with tackling potential threats and to have a better and clearer overview of the internal and external risks that might negatively affect the success of the project. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref> The aim of the risk register is to record information related to the identification, assessment, evaluation of importance, and managing of the potential risks. <ref name="Pmi" /> <ref name="PRINCE" /> More specifically, the uncertainty that exists in projects makes it necessary to use a model that provides various information for the events that could threaten the projects. <ref name="Pmi" />

In the ''‘PMBOK guide ’ ''it is outlined that the tool risk register can be used in different phases of a project. Firstly, it can be used at a very early stage of a project in order to provide information for the risks that might be a threat. Secondly, as the project continues, new threats are recorded and documented in the risk register. In other words, it is used to update the new risks and inform the risk owners how they should monitor the new threats. Finally, it documents all the risks that have been recorded after the completion of a project. <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>

=== Elements of Risk Register===

As can be seen in figure 1, the implementation of the risk register model follows four processes. Firstly, the risks have to be identified. Secondly, they have to be assessed based on their impact and probability. After risk assessment, it is important to define the actions that must be taken, in order to manage the risks. The final process of the risk register model follows, deals with the ways the risks can be monitored. <ref name="Pmi" /> <ref name="ot" /> <ref name="PRINCE"/> The outcome of the previously mentioned processes is the input for the risk register framework.

[[File:Screenshot 2021-02-25 221935.png‎|center|thumb|310px|Figure 1: Implementation steps of Risk Register (own figure, based on <ref name="Pmi" />,<ref name="ot" /> and <ref name="PRINCE"/>) ]]

Risk register has the form of a table where each column represents different characteristics of the potential risks.<ref name="latvia"> Project Risk Register Analysis Based on the Theoretical Analysis of Project Management Notion of Risk, Juris Uzulāns, University of Latvia, 2016 Retrieved from: https://doi.org/10.1515/eb-2016-0020 </ref> In order to start building the risk register the first step is the identification of the risks. Once the potential threats are known it is vital to provide a brief description for each one. <ref name="Pmi" /> This helps the project managers not only to clarify the risks but also to understand why they are threatening the project’s success. Secondly, for the assessment of the risks, their probability and impact on the project are examined. Furthermore, in'' ‘Practice Standard for Project Risk Management’'' it is stated that the evaluation of the risk is depending on their impact and their frequency to happen.<ref name="Pmi" /> For instance, the risks that have high impact and probability to occur, are risks with higher importance than the risks with low frequency and impact. The identification of the risks’ importance is an essential element for project managers to know which risks are needed more attention and time for setting up a plan in order to overcome them. <ref name="Pmi" /> Furthermore, based on the ''‘PMBOK guide’'' the risk register also includes information about the person who must tackle every risk and the actions that he has to take to eliminate its negative consequences. <ref name="ot" /> Finally, the risks should be monitored in order to prevent unexpected events. <ref name="Pmi" /> The above elements are demanding high attention as they are mainly focused on dominant areas of the risk management process which are the identification of the threats, the evaluation of their importance, the course of action that should be taken to respond and control them. Figure 2 illustrates the risk register table based on the discussion above.

[[File:table1111.png‎|center|thumb|600px|Figure 2: Risk Register table (own figure, based on the discussion above)]]

==How Risk register is used ? ==
In order to have an in-depth understanding of the risk register, it is of utmost importance to analyse the way that it can be used. The tool aims to eliminate the negative impacts of the various threats by identifying, assessing, evaluating, and monitoring them. The following sections provide a guidance on how the four processes of risk register can be implemented.
=== 1. How to identify the risks ===
As a first step, the risks have to be identified by using the right techniques. Once this is complete, a short description of the risks that have been identified through the risk management process is provided.

''' 1.1 Risk identification '''

As it is quoted in ''‘Practice Standard for Project Risk Management’'', ''‘’ A risk cannot be managed unless it is first identified.’’'' <ref name="Pmi" /> (p.25) The identified risks are the first information that will be used in the risk register. <ref name="Pmi" /> <ref name="ot" /> It is worth noting that the risk identification process is continuous because as time passes, the number of information increases. In other words, new risks will become knowable by repeating the risk identification process in different phases of a project. <ref name="Pmi" />

In this article, three methods are used for the risk identification process and all of them are following the ''‘Practice Standard for Project Risk Management’'' <ref name="Pmi" /> (p.28):

*'''''Historical review''''': This technique is used as an analysis of events that happened in the past. When this method is used it is vital to make sure that the events that are under observation are correlated with risks that happened before in this project or in different projects from the same or different company. This method demands attention as there is the risk to compare data and risks from projects that are not closely connected to the project.
* '''''Current Assessment''''': In this method, the risk identification process is focused on analysing the project’s uncertainty based on the information that is known in this specific period of time.
*''''' Creativity Techniques''''': This approach is based on the creativity of the people who participate in the project. To be more specific, stakeholders have the chance to work individually or with other people in order to identify risks by using creative methods and thinking outside of the box.

All of the techniques mentioned above have both strong points and limitations. This means that if they are used separately, they might lead to inadequate results. Thus, the combination of the three techniques can guarantee more accurate results. <ref name="Pmi" /> (p.28)

''' 1.2 Risk description'''

The description of the identified risks is a very important component of the risk identification process. It is a way to make sure that the risks are well communicated and understood among all the stakeholders. <ref name="ppp"> Guide to Using a Risk Register, Stephanie Ray, https://www.projectmanager.com/blog/guide-using-risk-register Accessed on 19/02/2020 </ref> For instance, in a construction problem, it is identified that a potential risk could be a shock in the economy. A potential explanation is that a shock in the economy could increase the price of raw materials and as a result the project might exceed the agreed budget. As it could be observed, the description of this risk could give a better insight into what this change might impact.

=== 2. How to assess the risks ===
The assessment of the various risks could be applied by using two methods, namely, the qualitative and quantitative risk analysis. Both methods are used to evaluate risks’ importance to the project. This includes an analysis of the probability that each risk has to occur and the impact that they might have on the project. <ref name="Pmi" /> In this article, the assessment of the identified risks is following the ''‘’ Practice Standard for Project Risk Management‘’ '' and the''‘’ PMBOK guide ‘’ ''.

* '''Qualitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

In qualitative risk analysis, the risks are evaluated and ranked based on their probability, impact, and some other characteristics that have been defined before the implementation of the analysis. This analysis is implemented regularly as new threats might need to be identified. The basic components of qualitative risk analysis are the high or low probability of a risk to happen and the consequences that it might have in ''‘’ one or more project objectives such as schedule, cost, quality, or performance.’’'' <ref name="ot" /> (p.423) Additionally, in qualitative risk analysis the risks can be grouped based on various criteria. For example, they can be grouped by risks that might exceed projects’ deadlines. This way, the project management team could monitor the risks in a more effective way since not only they will know the project areas they need to pay more attention to, but they will also have a quicker response managing the threats of the several categories.

* '''Quantitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

The quantitative risk analysis is used to calculate risks’ effects on the project. While this numerical analysis is not considered vital for all the projects, it provides more pragmatistic results. The implementation of the quantitative risk analysis follows on from the qualitative risk analysis. This could be explained by the fact that in the qualitative risk analysis the risks are already prioritized and thus the most vital threats are recognized and could be calculated. The impact and the probability are calculated, and the risk register table can be updated with numerical results.

=== 3. How to respond to the risks ===

It is of utmost importance to tackle the identified risks once they have been assessed. In order to do so, it is necessary to perform a risk management plan which will include the actions for dealing with the risks and the person who is responsible to tackle them. As a first step the risks should be known by all the stakeholders. Every potential risk is assigned to the right people. These people are called risk owners and they are responsible with controlling and finding solutions for the risks they are assigned with. The risks could harm the project in various ways and for this reason, there should be a plan with responses for all of them.<ref name="Pmi" /> <ref name="ot" /> In the ''‘Practice Standard for Project Risk Management’'' it is written that ''’’ the planning entails agreeing upon the actions to be taken and the potential changes to the budget, schedule, resources, and scope which these actions might cause.’’'' <ref name="Pmi" /> (p.43) Furthermore, the actions that have to be taken for every risk should be developed at the very early stage of its identification. In other words, it is integral to have the strategies and responses in advance so that project’s time schedule will change as little as possible. <ref name="Pmi" /> The risk register includes all the responses and actions on its table. Once new risks are identified risk register is updated with new strategies that the risk owner has to follow. Moreover, throughout the lifecycle of a project, it is possible to make adjustments and corrections to the plans of the previously identified risks. <ref name="ppp" />

=== 4. How to monitor the risks ===

Risk monitoring is the last process that needs to be implemented in order to fill in the risk register table. This final step is as important as the three steps mentioned above. Risk should be monitored throughout the life cycle of a project. It is a continuous process that includes the actions that have to be taken in order to control not only the risks that already have been identified but also the new threats that have to be tamed. <ref name="Pmi" />. <ref name="ot" /> Additionally, risk monitoring is used to certify that all the risk responses are taken place when there is a need for action. This is a way to appraise the effectiveness of the responses and the risk owner in the risk management process. <ref name="Pmi" /> The process starts by checking the risk register table. The table should include the appropriate responses for every risk, otherwise, it has to be updated with the new actions that have to be taken.<ref name="Pmi" /> Moreover, it is important for the new actions and changes to be well communicated to the stakeholders and to the people responsible for that specific risks. The number of information varies at the different stages of a project. More information is available to the project managers as the project continues its processes, which means that changes can be made in the risk register. These changes will be defined during the monitoring process and will be updated and documented in the risk register by providing new information for the actions that have to be changed. <ref name="Pmi" />

In this article, three techniques are analyzed for controlling the risks. These techniques are analyzed in the ''‘PMBOK guide ’'' <ref name="ot" /> (p.456-457) :

* '''Data analysis''': This technique is used to ensure that the reserves of the project are enough to not threaten its budget and the deadlines. <ref name="ot" /> More specifically, this analysis is checking if the reserves that a project has as a backup is enough to ensure that it will have the resources to manage an unexpected event that will make its budget and time exceed the agreed limits. <ref name="Pmi" />

* '''Audits''': This method applied in order to evaluate the performance of the processes included in the risk management and hence they are recorded in the risk register. It is worth noting that this way of monitoring risks can be conducted during project meetings when the project team examines the risks. <ref name="ot" />

* '''Meetings''': During meetings, the project management team can evaluate the various risks. This is a vital process that examines the overall process of risk management planning. More specifically, the meeting can ensure that all the stakeholders have a clear overview of the risks that need to be tackled. Furthermore, it is possible that some of the identified risks happened in the past, and through the meeting, the project management team can communicate the learning outcomes and mistakes that they should avoid in the future. <ref name="ot" />

After these processes, the risk register framework is updated with the new data in order to assist the project management team with the risk management process.

==Reflections==
While many positive outcomes can arise from the use of the risk register framework, there are also some limitations that are worth mentioning. In this section, the advantages and limitations of the risk register framework are discussed.
=== Advantages ===
The risk register is used to document information about the various risks that have been identified not only at the very early stages but also throughout the whole lifecycle of the project. This is an extremely beneficial characteristic of the tool that can be used for the assessment of a project's performance as well as for the strategic and decision-making processes that are related to risk management. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> More specifically, as the project is developing, the amount of gathered information is growing which means that new risks will be identified to threaten the project's success. The risk register table is storing the information from the risks that already have been identified and evaluated, and once new treats have been found, the table is expanded with the new data. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> This could be vital for the overall success of the project since the new risk could be well communicated among the stakeholders and thus they will be informed for the new actions they have to take in order to eliminate the negative impact of the threats. Additionally, the table includes information that is the output of the qualitative risk analysis. <ref name="Pmi" /> <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref> In other words, in the qualitative analysis, it is examined how possible is for a risk to take place and the impact that it will have on the project. This analysis is used to prioritize the risks based on their importance. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> Once the risks are ranked, the stakeholders are informed of the threats that they have to pay more attention to. This means that they might have to spend more time planning a strategy around these risks as they will have a higher impact. Finally, the risk register is an advantageous tool for complex projects. When a project is very complex, it's important to use tools that could break down the planning processes. Risk register, due to its structure, provides the needed information for every risk from the moment it is identified. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref>

=== Limitations ===
The identified risks are listed based on the critical way of thinking of the people who are associated with the risk evaluation. This could be a limitation since the results on the risk register table might reflect the personal opinion of the people who implemented it and not the reality.<ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref> <ref name="fd"> Why risk registers don't do enough to help you manage risks, https://www.civilsociety.co.uk/finance/why-risk-registers-don-t-do-enough-to-help-you-manage-risks.html, Accessed on 22/02/2020 </ref> Moreover, the development of the risk register table requires a lot of time in order to insert the data from the four processes. Apart from that since the table is updated when changes are made either to the list of the identified risks or to the actions that have to be taken, it is possible that mistakes might occur when the new data are imported. Hence, the implementation of the documented results of the risk register seeks attention in order to avoid mistakes. However, the risk register is more than important when it comes to analysing the risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> This means that even though it is a time-consuming process, the outcomes of the tool can prevent threats that otherwise could have a negative impact on the project.

It is worth noting, that ignoring the limitations of the risk management tool could have a negative impact on the project. Nevertheless, it is a very important tool that should be applied in the risk management processes most or all of the time.

==Annotated bibliography==
* '' "Practice standard for project risk management." Project Management Institute, 2009.''
This book is based on the PMBOK Guide– Fourth Edition. It is a book about the risk management processes that a project has to follow. It analyses the techniques for the identification, assessment, responding, and controlling of the risks. In this book, the reader can find information for the risk register model and how it is involved in all the previously mentioned processes. Although the book provides many details on how to manage risks, it does not illustrate the risk register table. For this reason, the visualization of the table in this article is based on the theoretical outcomes of the book and not on the graphical illustrations included in it.

* ''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017)''
This book is focused on how to manage projects based on PRINCE2 principles. It describes the activities that a project needs based on its implementation stage. Risks analysis is also explained in one of the chapters of the book. In this book, the various stages of the risk management process are explained by providing the needing theory and figures. For example, the article's figure 1 is inspired by one of the illustrations of the book. However, the risk register model is also not illustrated in one of the pages of the book and that could be considered as a negative point.

* ''Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017)''
The book A guide to the Project Management Body of Knowledge provides detailed information on how to manage projects. The risk register framework is analyzed in the chapters of the book by providing information on the usage of the tool in the various processes of risk management. This book is a very useful guide for project management planning. It provides many details for the implementation and organization of projects.

==References==
<references/>

Risk Register analysis

2021-02-28T21:41:40Z

Dorothea Georgiadou: /* Elements of Risk Register */

Developed by Dorothea Georgiadou

In an age where the economic, social, and political environment is constantly shifting, there is an urgent need to study the risks that may threaten the success of a project. It is particularly important to study the risks that may adversely affect the project and lead to events that might have as a consequence the exceeding of the agreed budget and time. For this reason, the risk management planning should identify and describe in detail the potential risks by providing the needed information for the actions that should be done for eliminating their negative impact. The high uncertainty that exists in projects necessitates the use of a management tool that will control the risks. <ref name="Pmi"> Project Mangement Institute. "Practice standard for project risk management." Project Management Institute, 2009. </ref> In this article the risk management framework ‘’Risk register’’ is explained. The risk register is a tool that covers and studies many aspects of risk management processes. More specifically, the aim of this article is to explain how this tool can be used to document the outcomes of the risk management processes. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013, Retrieved from: https://doi.org/10.14256/JCE.722.2012 </ref> The article provides a description of the tool along with the reasons that it should be used. It is a framework that aims to record the information from the processes related to the identification, assessment, responding, and monitoring of potential risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. Finally, the article analyzes along with the benefits also the limitations of this risk management tool.

== Why use risk register? ==
In an ever-changing environment, a projects’ success is associated with a high level of uncertainty. In the ‘Practice Standard for Project Risk Management’, risk management is an approach that plays a vital role in the strategic and decision-making processes since adjustments in the project management planning can be done after the identification of the projects’ challenges. The risk register framework is used to support the risk management process in order to eliminate the negative impact that the various threats might have on a project. Threats could come from the external and internal environment of the company. The external risks are associated with the economic, social, political, and technological environment, while the internal threats include risks that are related to human actions and estimations. <ref name="Pmi" /> <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. For example, it is possible for people to make wrong estimations because of inexperience and underestimation of some threats. This high level of uncertainty makes it increasingly necessary to use a model that assists the risk management process in a more effective way. <ref name="Pmi" /> <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>.
=== The role of Risk Register ===
In ''‘Practice Standard for Project Risk Management’'', the risk register is defined as the framework that is used in project risk management for the documentation of the identified risks. It records all the needed information that will be the steppingstone to overcome the risks that might menace projects' success. <ref name="Pmi" /> It is worth noting that based on ''‘PRINCE2’'', the risks are divided into threats and opportunities. Threats are the risks that could have negative consequences for the project, while opportunities could bring positive outcomes to the company. <ref name="PRINCE"> Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017) Retrieved from: https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=4863041</ref> The article is mainly focused on the documentation of the various threats in the risk register. The importance of the tool is highlighted in the fact that it can assist project managers with tackling potential threats and to have a better and clearer overview of the internal and external risks that might negatively affect the success of the project. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref> The aim of the risk register is to record information related to the identification, assessment, evaluation of importance, and managing of the potential risks. <ref name="Pmi" /> <ref name="PRINCE" /> More specifically, the uncertainty that exists in projects makes it necessary to use a model that provides various information for the events that could threaten the projects. <ref name="Pmi" />

In the ''‘PMBOK guide ’ ''it is outlined that the tool risk register can be used in different phases of a project. Firstly, it can be used at a very early stage of a project in order to provide information for the risks that might be a threat. Secondly, as the project continues, new threats are recorded and documented in the risk register. In other words, it is used to update the new risks and inform the risk owners how they should monitor the new threats. Finally, it documents all the risks that have been recorded after the completion of a project. <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>

=== Elements of Risk Register===

As can be seen in figure 1, the implementation of the risk register model follows four processes. Firstly, the risks have to be identified. Secondly, they have to be assessed based on their impact and probability. After risk assessment, it is important to define the actions that must be taken, in order to manage the risks. The final process of the risk register model follows, deals with the ways the risks can be monitored. <ref name="Pmi" /> <ref name="ot" /> <ref name="PRINCE"/> The outcome of the previously mentioned processes is the input for the risk register framework.

[[File:Screenshot 2021-02-25 221935.png‎|center|thumb|310px|Figure 1: Implementation steps of Risk Register (own figure, based on <ref name="Pmi" />,<ref name="ot" /> and <ref name="PRINCE"/>) ]]

Risk register has the form of a table where each column represents different characteristics of the potential risks.<ref name="latvia"> Project Risk Register Analysis Based on the Theoretical Analysis of Project Management Notion of Risk, Juris Uzulāns, University of Latvia, 2016 Retrieved from: https://doi.org/10.1515/eb-2016-0020 </ref> In order to start building the risk register the first step is the identification of the risks. Once the potential threats are known it is vital to provide a brief description for each one. <ref name="Pmi" /> This helps the project managers not only to clarify the risks but also to understand why they are threatening the project’s success. Secondly, for the assessment of the risks, their probability and impact on the project are examined. Furthermore, in'' ‘Practice Standard for Project Risk Management’'' it is stated that the evaluation of the risk is depending on their impact and their frequency to happen.<ref name="Pmi" /> For instance, the risks that have high impact and probability to occur, are risks with higher importance than the risks with low frequency and impact. The identification of the risks’ importance is an essential element for project managers to know which risks are needed more attention and time for setting up a plan in order to overcome them. <ref name="Pmi" /> Furthermore, based on the ''‘PMBOK guide’'' the risk register also includes information about the person who must tackle every risk and the actions that he has to take to eliminate its negative consequences. <ref name="ot" /> Finally, the risks should be monitored in order to prevent unexpected events. <ref name="Pmi" /> The above elements are demanding high attention as they are mainly focused on dominant areas of the risk management process which are the identification of the threats, the evaluation of their importance, the course of action that should be taken to respond and control them. Figure 2 illustrates the risk register table based on the discussion above.

[[File:table1111.png‎|center|thumb|600px|Figure 2: Risk Register table (own figure, based on the discussion above)]]

==How Risk register is used ? ==
In order to have an in-depth understanding of the risk register, it is of utmost importance to analyse the way that it can be used. The tool aims to eliminate the negative impacts of the various threats by identifying, assessing, evaluating, and monitoring them. The following sections provide a guidance on how the four processes of risk register can be implemented.
=== 1. How to identify the risks ===
As a first step, the risks have to be identified by using the right techniques. Once this is complete, a short description of the risks that have been identified through the risk management process is provided.

''' 1.1 Risk identification '''

As it is quoted in ''‘Practice Standard for Project Risk Management’'', ''‘’ A risk cannot be managed unless it is first identified.’’'' <ref name="Pmi" /> (p.25) The identified risks are the first information that will be used in the risk register. <ref name="Pmi" /> <ref name="ot" /> It is worth noting that the risk identification process is continuous because as time passes, the number of information increases. In other words, new risks will become knowable by repeating the risk identification process in different phases of a project. <ref name="Pmi" />

In this article, three methods are used for the risk identification process and all of them are following the ''‘Practice Standard for Project Risk Management’'' <ref name="Pmi" /> (p.28):

*'''''Historical review''''': This technique is used as an analysis of events that happened in the past. When this method is used it is vital to make sure that the events that are under observation are correlated with risks that happened before in this project or in different projects from the same or different company. This method demands attention as there is the risk to compare data and risks from projects that are not closely connected to the project.
* '''''Current Assessment''''': In this method, the risk identification process is focused on analysing the project’s uncertainty based on the information that is known in this specific period of time.
*''''' Creativity Techniques''''': This approach is based on the creativity of the people who participate in the project. To be more specific, stakeholders have the chance to work individually or with other people in order to identify risks by using creative methods and thinking outside of the box.

All of the techniques mentioned above have both strong points and limitations. This means that if they are used separately, they might lead to inadequate results. Thus, the combination of the three techniques can guarantee more accurate results. <ref name="Pmi" /> (p.28)

''' 1.2 Risk description'''

The description of the identified risks is a very important component of the risk identification process. It is a way to make sure that the risks are well communicated and understood among all the stakeholders. <ref name="ppp"> Guide to Using a Risk Register, Stephanie Ray, https://www.projectmanager.com/blog/guide-using-risk-register Accessed on 19/02/2020 </ref> For instance, in a construction problem, it is identified that a potential risk could be a shock in the economy. A potential explanation is that a shock in the economy could increase the price of raw materials and as a result the project might exceed the agreed budget. As it could be observed, the description of this risk could give a better insight into what this change might impact.

=== 2. How to assess the risks ===
The assessment of the various risks could be applied by using two methods, namely, the qualitative and quantitative risk analysis. Both methods are used to evaluate risks’ importance to the project. This includes an analysis of the probability that each risk has to occur and the impact that they might have on the project. <ref name="Pmi" /> In this article, the assessment of the identified risks is following the ''‘’ Practice Standard for Project Risk Management‘’ '' and the''‘’ PMBOK guide ‘’ ''.

* '''Qualitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

In qualitative risk analysis, the risks are evaluated and ranked based on their probability, impact, and some other characteristics that have been defined before the implementation of the analysis. This analysis is implemented regularly as new threats might need to be identified. The basic components of qualitative risk analysis are the high or low probability of a risk to happen and the consequences that it might have in ''‘’ one or more project objectives such as schedule, cost, quality, or performance.’’'' <ref name="ot" /> (p.423) Additionally, in qualitative risk analysis the risks can be grouped based on various criteria. For example, they can be grouped by risks that might exceed projects’ deadlines. This way, the project management team could monitor the risks in a more effective way since not only they will know the project areas they need to pay more attention to, but they will also have a quicker response managing the threats of the several categories.

* '''Quantitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

The quantitative risk analysis is used to calculate risks’ effects on the project. While this numerical analysis is not considered vital for all the projects, it provides more pragmatistic results. The implementation of the quantitative risk analysis follows on from the qualitative risk analysis. This could be explained by the fact that in the qualitative risk analysis the risks are already prioritized and thus the most vital threats are recognized and could be calculated. The impact and the probability are calculated, and the risk register table can be updated with numerical results.

=== 3. How to respond to the risks ===

It is of utmost importance to tackle the identified risks once they have been assessed. In order to do so, it is necessary to perform a risk management plan which will include the actions for dealing with the risks and the person who is responsible to tackle them. As a first step the risks should be known by all the stakeholders. Every potential risk is assigned to the right people. These people are called risk owners and they are responsible with controlling and finding solutions for the risks they are assigned with. The risks could harm the project in various ways and for this reason, there should be a plan with responses for all of them.<ref name="Pmi" /> <ref name="ot" /> In the ''‘Practice Standard for Project Risk Management’'' it is written that ''’’ the planning entails agreeing upon the actions to be taken and the potential changes to the budget, schedule, resources, and scope which these actions might cause.’’'' <ref name="Pmi" /> (p.43) Furthermore, the actions that have to be taken for every risk should be developed at the very early stage of its identification. In other words, it is integral to have the strategies and responses in advance so that project’s time schedule will change as little as possible. <ref name="Pmi" /> The risk register includes all the responses and actions on its table. Once new risks are identified risk register is updated with new strategies that the risk owner has to follow. Moreover, throughout the lifecycle of a project, it is possible to make adjustments and corrections to the plans of the previously identified risks. <ref name="ppp" />

=== 4. How to monitor the risks ===

Risk monitoring is the last process that needs to be implemented in order to fill in the risk register table. This final step is as important as the three steps mentioned above. Risk should be monitored throughout the life cycle of a project. It is a continuous process that includes the actions that have to be taken in order to control not only the risks that already have been identified but also the new threats that have to be tamed. <ref name="Pmi" />. <ref name="ot" /> Additionally, risk monitoring is used to certify that all the risk responses are taken place when there is a need for action. This is a way to appraise the effectiveness of the responses and the risk owner in the risk management process. <ref name="Pmi" /> The process starts by checking the risk register table. The table should include the appropriate responses for every risk, otherwise, it has to be updated with the new actions that have to be taken.<ref name="Pmi" /> Moreover, it is important for the new actions and changes to be well communicated to the stakeholders and to the people responsible for that specific risks. The number of information varies at the different stages of a project. More information is available to the project managers as the project continues its processes, which means that changes can be made in the risk register. These changes will be defined during the monitoring process and will be updated and documented in the risk register by providing new information for the actions that have to be changed. <ref name="Pmi" />

In this article, three techniques are analyzed for controlling the risks. These techniques are analyzed in the ''‘PMBOK guide ’'' <ref name="ot" /> (p.456-457) :

* '''Data analysis''': This technique is used to ensure that the reserves of the project are enough to not threaten its budget and the deadlines. <ref name="ot" /> More specifically, this analysis is checking if the reserves that a project has as a backup is enough to ensure that it will have the resources to manage an unexpected event that will make its budget and time exceed the agreed limits. <ref name="Pmi" />

* '''Audits''': This method applied in order to evaluate the performance of the processes included in the risk management and hence they are recorded in the risk register. It is worth noting that this way of monitoring risks can be conducted during project meetings when the project team examines the risks. <ref name="ot" />

* '''Meetings''': During meetings, the project management team can evaluate the various risks. This is a vital process that examines the overall process of risk management planning. More specifically, the meeting can ensure that all the stakeholders have a clear overview of the risks that need to be tackled. Furthermore, it is possible that some of the identified risks happened in the past, and through the meeting, the project management team can communicate the learning outcomes and mistakes that they should avoid in the future. <ref name="ot" />

After these processes, the risk register framework is updated with the new data in order to assist the project management team with the risk management process.

==Reflections==
While many positive outcomes can arise from the use of the risk register framework, there are also some limitations that are worth mentioning. In this section, the advantages and limitations of the risk register framework are discussed.
=== Advantages ===
The risk register is used to document information about the various risks that have been identified not only at the very early stages but also throughout the whole lifecycle of the project. This is an extremely beneficial characteristic of the tool that can be used for the assessment of a project's performance as well as for the strategic and decision-making processes that are related to risk management. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> More specifically, as the project is developing, the amount of gathered information is growing which means that new risks will be identified to threaten the project's success. The risk register table is storing the information from the risks that already have been identified and evaluated, and once new treats have been found, the table is expanded with the new data. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> This could be vital for the overall success of the project since the new risk could be well communicated among the stakeholders and thus they will be informed for the new actions they have to take in order to eliminate the negative impact of the threats. Additionally, the table includes information that is the output of the qualitative risk analysis. <ref name="Pmi" /> <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref> In other words, in the qualitative analysis, it is examined how possible is for a risk to take place and the impact that it will have on the project. This analysis is used to prioritize the risks based on their importance. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> Once the risks are ranked, the stakeholders are informed of the threats that they have to pay more attention to. This means that they might have to spend more time planning a strategy around these risks as they will have a higher impact. Finally, the risk register is an advantageous tool for complex projects. When a project is very complex, it's important to use tools that could break down the planning processes. Risk register, due to its structure, provides the needed information for every risk from the moment it is identified. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref>

=== Limitations ===
The identified risks are listed based on the critical way of thinking of the people who are associated with the risk evaluation. This could be a limitation since the results on the risk register table might reflect the personal opinion of the people who implemented it and not the reality.<ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref> <ref name="fd"> Why risk registers don't do enough to help you manage risks, https://www.civilsociety.co.uk/finance/why-risk-registers-don-t-do-enough-to-help-you-manage-risks.html, Accessed on 22/02/2020 </ref> Moreover, the development of the risk register table requires a lot of time in order to insert the data from the four processes. Apart from that since the table is updated when changes are made either to the list of the identified risks or to the actions that have to be taken, it is possible that mistakes might occur when the new data are imported. Hence, the implementation of the documented results of the risk register seeks attention in order to avoid mistakes. However, the risk register is more than important when it comes to analysing the risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> This means that even though it is a time-consuming process, the outcomes of the tool can prevent threats that otherwise could have a negative impact on the project.

It is worth noting, that ignoring the limitations of the risk management tool could have a negative impact on the project. Nevertheless, it is a very important tool that should be applied in the risk management processes most or all of the time.

==Annotated bibliography==
* '' "Practice standard for project risk management." Project Management Institute, 2009.''
This book is based on the PMBOK Guide– Fourth Edition. It is a book about the risk management processes that a project has to follow. It analyses the techniques for the identification, assessment, responding, and controlling of the risks. In this book, the reader can find information for the risk register model and how it is involved in all the previously mentioned processes. Although the book provides many details on how to manage risks, it does not illustrate the risk register table. For this reason, the visualization of the table in this article is based on the theoretical outcomes of the book and not on the graphical illustrations included in it.

* ''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017)''
This book is focused on how to manage projects based on PRINCE2 principles. It describes the activities that a project needs based on its implementation stage. Risks analysis is also explained in one of the chapters of the book. In this book, the various stages of the risk management process are explained by providing the needing theory and figures. For example, the article's figure 1 is inspired by one of the illustrations of the book. However, the risk register model is also not illustrated in one of the pages of the book and that could be considered as a negative point.

* ''Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017)''
The book A guide to the Project Management Body of Knowledge provides detailed information on how to manage projects. The risk register framework is analyzed in the chapters of the book by providing information on the usage of the tool in the various processes of risk management. This book is a very useful guide for project management planning. It provides many details for the implementation and organization of projects.

==References==
<references/>

Risk Register analysis

2021-02-28T21:39:55Z

Dorothea Georgiadou:

Developed by Dorothea Georgiadou

In an age where the economic, social, and political environment is constantly shifting, there is an urgent need to study the risks that may threaten the success of a project. It is particularly important to study the risks that may adversely affect the project and lead to events that might have as a consequence the exceeding of the agreed budget and time. For this reason, the risk management planning should identify and describe in detail the potential risks by providing the needed information for the actions that should be done for eliminating their negative impact. The high uncertainty that exists in projects necessitates the use of a management tool that will control the risks. <ref name="Pmi"> Project Mangement Institute. "Practice standard for project risk management." Project Management Institute, 2009. </ref> In this article the risk management framework ‘’Risk register’’ is explained. The risk register is a tool that covers and studies many aspects of risk management processes. More specifically, the aim of this article is to explain how this tool can be used to document the outcomes of the risk management processes. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013, Retrieved from: https://doi.org/10.14256/JCE.722.2012 </ref> The article provides a description of the tool along with the reasons that it should be used. It is a framework that aims to record the information from the processes related to the identification, assessment, responding, and monitoring of potential risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. Finally, the article analyzes along with the benefits also the limitations of this risk management tool.

== Why use risk register? ==
In an ever-changing environment, a projects’ success is associated with a high level of uncertainty. In the ‘Practice Standard for Project Risk Management’, risk management is an approach that plays a vital role in the strategic and decision-making processes since adjustments in the project management planning can be done after the identification of the projects’ challenges. The risk register framework is used to support the risk management process in order to eliminate the negative impact that the various threats might have on a project. Threats could come from the external and internal environment of the company. The external risks are associated with the economic, social, political, and technological environment, while the internal threats include risks that are related to human actions and estimations. <ref name="Pmi" /> <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. For example, it is possible for people to make wrong estimations because of inexperience and underestimation of some threats. This high level of uncertainty makes it increasingly necessary to use a model that assists the risk management process in a more effective way. <ref name="Pmi" /> <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>.
=== The role of Risk Register ===
In ''‘Practice Standard for Project Risk Management’'', the risk register is defined as the framework that is used in project risk management for the documentation of the identified risks. It records all the needed information that will be the steppingstone to overcome the risks that might menace projects' success. <ref name="Pmi" /> It is worth noting that based on ''‘PRINCE2’'', the risks are divided into threats and opportunities. Threats are the risks that could have negative consequences for the project, while opportunities could bring positive outcomes to the company. <ref name="PRINCE"> Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017) Retrieved from: https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=4863041</ref> The article is mainly focused on the documentation of the various threats in the risk register. The importance of the tool is highlighted in the fact that it can assist project managers with tackling potential threats and to have a better and clearer overview of the internal and external risks that might negatively affect the success of the project. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref> The aim of the risk register is to record information related to the identification, assessment, evaluation of importance, and managing of the potential risks. <ref name="Pmi" /> <ref name="PRINCE" /> More specifically, the uncertainty that exists in projects makes it necessary to use a model that provides various information for the events that could threaten the projects. <ref name="Pmi" />

In the ''‘PMBOK guide ’ ''it is outlined that the tool risk register can be used in different phases of a project. Firstly, it can be used at a very early stage of a project in order to provide information for the risks that might be a threat. Secondly, as the project continues, new threats are recorded and documented in the risk register. In other words, it is used to update the new risks and inform the risk owners how they should monitor the new threats. Finally, it documents all the risks that have been recorded after the completion of a project. <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>

=== Elements of Risk Register===

As can be seen in figure 1, the implementation of the risk register model follows four processes. Firstly, the risks have to be identified. Secondly, they have to be assessed based on their impact and probability. After risk assessment, it is important to define the actions that must be taken, in order to manage the risks. The final process of the risk register model follows, deals with the ways the risks can be monitored. <ref name="Pmi" /> <ref name="ot" /> <ref name="PRINCE"/> The outcome of the previously mentioned processes is the input for the risk register framework.

[[File:Screenshot 2021-02-25 221935.png‎|center|thumb|310px|Figure 1: Implementation steps of Risk Register (own figure, based on <ref name="Pmi" />,<ref name="ot" /> and <ref name="PRINCE"/>) ]]

Risk register has the form of a table where each column represents different characteristics of the potential risks.<ref name="latvia"> Project Risk Register Analysis Based on the Theoretical Analysis of Project Management Notion of Risk, Juris Uzulāns, University of Latvia, 2016 Retrieved from: https://content.sciendo.com/configurable/contentpage/journals$002feb$002f29$002f1$002farticle-p43.xml </ref> In order to start building the risk register the first step is the identification of the risks. Once the potential threats are known it is vital to provide a brief description for each one. <ref name="Pmi" /> This helps the project managers not only to clarify the risks but also to understand why they are threatening the project’s success. Secondly, for the assessment of the risks, their probability and impact on the project are examined. Furthermore, in'' ‘Practice Standard for Project Risk Management’'' it is stated that the evaluation of the risk is depending on their impact and their frequency to happen.<ref name="Pmi" /> For instance, the risks that have high impact and probability to occur, are risks with higher importance than the risks with low frequency and impact. The identification of the risks’ importance is an essential element for project managers to know which risks are needed more attention and time for setting up a plan in order to overcome them. <ref name="Pmi" /> Furthermore, based on the ''‘PMBOK guide’'' the risk register also includes information about the person who must tackle every risk and the actions that he has to take to eliminate its negative consequences. <ref name="ot" /> Finally, the risks should be monitored in order to prevent unexpected events. <ref name="Pmi" /> The above elements are demanding high attention as they are mainly focused on dominant areas of the risk management process which are the identification of the threats, the evaluation of their importance, the course of action that should be taken to respond and control them. Figure 2 illustrates the risk register table based on the discussion above.

[[File:table1111.png‎|center|thumb|600px|Figure 2: Risk Register table (own figure, based on the discussion above)]]

==How Risk register is used ? ==
In order to have an in-depth understanding of the risk register, it is of utmost importance to analyse the way that it can be used. The tool aims to eliminate the negative impacts of the various threats by identifying, assessing, evaluating, and monitoring them. The following sections provide a guidance on how the four processes of risk register can be implemented.
=== 1. How to identify the risks ===
As a first step, the risks have to be identified by using the right techniques. Once this is complete, a short description of the risks that have been identified through the risk management process is provided.

''' 1.1 Risk identification '''

As it is quoted in ''‘Practice Standard for Project Risk Management’'', ''‘’ A risk cannot be managed unless it is first identified.’’'' <ref name="Pmi" /> (p.25) The identified risks are the first information that will be used in the risk register. <ref name="Pmi" /> <ref name="ot" /> It is worth noting that the risk identification process is continuous because as time passes, the number of information increases. In other words, new risks will become knowable by repeating the risk identification process in different phases of a project. <ref name="Pmi" />

In this article, three methods are used for the risk identification process and all of them are following the ''‘Practice Standard for Project Risk Management’'' <ref name="Pmi" /> (p.28):

*'''''Historical review''''': This technique is used as an analysis of events that happened in the past. When this method is used it is vital to make sure that the events that are under observation are correlated with risks that happened before in this project or in different projects from the same or different company. This method demands attention as there is the risk to compare data and risks from projects that are not closely connected to the project.
* '''''Current Assessment''''': In this method, the risk identification process is focused on analysing the project’s uncertainty based on the information that is known in this specific period of time.
*''''' Creativity Techniques''''': This approach is based on the creativity of the people who participate in the project. To be more specific, stakeholders have the chance to work individually or with other people in order to identify risks by using creative methods and thinking outside of the box.

All of the techniques mentioned above have both strong points and limitations. This means that if they are used separately, they might lead to inadequate results. Thus, the combination of the three techniques can guarantee more accurate results. <ref name="Pmi" /> (p.28)

''' 1.2 Risk description'''

The description of the identified risks is a very important component of the risk identification process. It is a way to make sure that the risks are well communicated and understood among all the stakeholders. <ref name="ppp"> Guide to Using a Risk Register, Stephanie Ray, https://www.projectmanager.com/blog/guide-using-risk-register Accessed on 19/02/2020 </ref> For instance, in a construction problem, it is identified that a potential risk could be a shock in the economy. A potential explanation is that a shock in the economy could increase the price of raw materials and as a result the project might exceed the agreed budget. As it could be observed, the description of this risk could give a better insight into what this change might impact.

=== 2. How to assess the risks ===
The assessment of the various risks could be applied by using two methods, namely, the qualitative and quantitative risk analysis. Both methods are used to evaluate risks’ importance to the project. This includes an analysis of the probability that each risk has to occur and the impact that they might have on the project. <ref name="Pmi" /> In this article, the assessment of the identified risks is following the ''‘’ Practice Standard for Project Risk Management‘’ '' and the''‘’ PMBOK guide ‘’ ''.

* '''Qualitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

In qualitative risk analysis, the risks are evaluated and ranked based on their probability, impact, and some other characteristics that have been defined before the implementation of the analysis. This analysis is implemented regularly as new threats might need to be identified. The basic components of qualitative risk analysis are the high or low probability of a risk to happen and the consequences that it might have in ''‘’ one or more project objectives such as schedule, cost, quality, or performance.’’'' <ref name="ot" /> (p.423) Additionally, in qualitative risk analysis the risks can be grouped based on various criteria. For example, they can be grouped by risks that might exceed projects’ deadlines. This way, the project management team could monitor the risks in a more effective way since not only they will know the project areas they need to pay more attention to, but they will also have a quicker response managing the threats of the several categories.

* '''Quantitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

The quantitative risk analysis is used to calculate risks’ effects on the project. While this numerical analysis is not considered vital for all the projects, it provides more pragmatistic results. The implementation of the quantitative risk analysis follows on from the qualitative risk analysis. This could be explained by the fact that in the qualitative risk analysis the risks are already prioritized and thus the most vital threats are recognized and could be calculated. The impact and the probability are calculated, and the risk register table can be updated with numerical results.

=== 3. How to respond to the risks ===

It is of utmost importance to tackle the identified risks once they have been assessed. In order to do so, it is necessary to perform a risk management plan which will include the actions for dealing with the risks and the person who is responsible to tackle them. As a first step the risks should be known by all the stakeholders. Every potential risk is assigned to the right people. These people are called risk owners and they are responsible with controlling and finding solutions for the risks they are assigned with. The risks could harm the project in various ways and for this reason, there should be a plan with responses for all of them.<ref name="Pmi" /> <ref name="ot" /> In the ''‘Practice Standard for Project Risk Management’'' it is written that ''’’ the planning entails agreeing upon the actions to be taken and the potential changes to the budget, schedule, resources, and scope which these actions might cause.’’'' <ref name="Pmi" /> (p.43) Furthermore, the actions that have to be taken for every risk should be developed at the very early stage of its identification. In other words, it is integral to have the strategies and responses in advance so that project’s time schedule will change as little as possible. <ref name="Pmi" /> The risk register includes all the responses and actions on its table. Once new risks are identified risk register is updated with new strategies that the risk owner has to follow. Moreover, throughout the lifecycle of a project, it is possible to make adjustments and corrections to the plans of the previously identified risks. <ref name="ppp" />

=== 4. How to monitor the risks ===

Risk monitoring is the last process that needs to be implemented in order to fill in the risk register table. This final step is as important as the three steps mentioned above. Risk should be monitored throughout the life cycle of a project. It is a continuous process that includes the actions that have to be taken in order to control not only the risks that already have been identified but also the new threats that have to be tamed. <ref name="Pmi" />. <ref name="ot" /> Additionally, risk monitoring is used to certify that all the risk responses are taken place when there is a need for action. This is a way to appraise the effectiveness of the responses and the risk owner in the risk management process. <ref name="Pmi" /> The process starts by checking the risk register table. The table should include the appropriate responses for every risk, otherwise, it has to be updated with the new actions that have to be taken.<ref name="Pmi" /> Moreover, it is important for the new actions and changes to be well communicated to the stakeholders and to the people responsible for that specific risks. The number of information varies at the different stages of a project. More information is available to the project managers as the project continues its processes, which means that changes can be made in the risk register. These changes will be defined during the monitoring process and will be updated and documented in the risk register by providing new information for the actions that have to be changed. <ref name="Pmi" />

In this article, three techniques are analyzed for controlling the risks. These techniques are analyzed in the ''‘PMBOK guide ’'' <ref name="ot" /> (p.456-457) :

* '''Data analysis''': This technique is used to ensure that the reserves of the project are enough to not threaten its budget and the deadlines. <ref name="ot" /> More specifically, this analysis is checking if the reserves that a project has as a backup is enough to ensure that it will have the resources to manage an unexpected event that will make its budget and time exceed the agreed limits. <ref name="Pmi" />

* '''Audits''': This method applied in order to evaluate the performance of the processes included in the risk management and hence they are recorded in the risk register. It is worth noting that this way of monitoring risks can be conducted during project meetings when the project team examines the risks. <ref name="ot" />

* '''Meetings''': During meetings, the project management team can evaluate the various risks. This is a vital process that examines the overall process of risk management planning. More specifically, the meeting can ensure that all the stakeholders have a clear overview of the risks that need to be tackled. Furthermore, it is possible that some of the identified risks happened in the past, and through the meeting, the project management team can communicate the learning outcomes and mistakes that they should avoid in the future. <ref name="ot" />

After these processes, the risk register framework is updated with the new data in order to assist the project management team with the risk management process.

==Reflections==
While many positive outcomes can arise from the use of the risk register framework, there are also some limitations that are worth mentioning. In this section, the advantages and limitations of the risk register framework are discussed.
=== Advantages ===
The risk register is used to document information about the various risks that have been identified not only at the very early stages but also throughout the whole lifecycle of the project. This is an extremely beneficial characteristic of the tool that can be used for the assessment of a project's performance as well as for the strategic and decision-making processes that are related to risk management. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> More specifically, as the project is developing, the amount of gathered information is growing which means that new risks will be identified to threaten the project's success. The risk register table is storing the information from the risks that already have been identified and evaluated, and once new treats have been found, the table is expanded with the new data. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> This could be vital for the overall success of the project since the new risk could be well communicated among the stakeholders and thus they will be informed for the new actions they have to take in order to eliminate the negative impact of the threats. Additionally, the table includes information that is the output of the qualitative risk analysis. <ref name="Pmi" /> <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref> In other words, in the qualitative analysis, it is examined how possible is for a risk to take place and the impact that it will have on the project. This analysis is used to prioritize the risks based on their importance. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> Once the risks are ranked, the stakeholders are informed of the threats that they have to pay more attention to. This means that they might have to spend more time planning a strategy around these risks as they will have a higher impact. Finally, the risk register is an advantageous tool for complex projects. When a project is very complex, it's important to use tools that could break down the planning processes. Risk register, due to its structure, provides the needed information for every risk from the moment it is identified. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref>

=== Limitations ===
The identified risks are listed based on the critical way of thinking of the people who are associated with the risk evaluation. This could be a limitation since the results on the risk register table might reflect the personal opinion of the people who implemented it and not the reality.<ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref> <ref name="fd"> Why risk registers don't do enough to help you manage risks, https://www.civilsociety.co.uk/finance/why-risk-registers-don-t-do-enough-to-help-you-manage-risks.html, Accessed on 22/02/2020 </ref> Moreover, the development of the risk register table requires a lot of time in order to insert the data from the four processes. Apart from that since the table is updated when changes are made either to the list of the identified risks or to the actions that have to be taken, it is possible that mistakes might occur when the new data are imported. Hence, the implementation of the documented results of the risk register seeks attention in order to avoid mistakes. However, the risk register is more than important when it comes to analysing the risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> This means that even though it is a time-consuming process, the outcomes of the tool can prevent threats that otherwise could have a negative impact on the project.

It is worth noting, that ignoring the limitations of the risk management tool could have a negative impact on the project. Nevertheless, it is a very important tool that should be applied in the risk management processes most or all of the time.

==Annotated bibliography==
* '' "Practice standard for project risk management." Project Management Institute, 2009.''
This book is based on the PMBOK Guide– Fourth Edition. It is a book about the risk management processes that a project has to follow. It analyses the techniques for the identification, assessment, responding, and controlling of the risks. In this book, the reader can find information for the risk register model and how it is involved in all the previously mentioned processes. Although the book provides many details on how to manage risks, it does not illustrate the risk register table. For this reason, the visualization of the table in this article is based on the theoretical outcomes of the book and not on the graphical illustrations included in it.

* ''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017)''
This book is focused on how to manage projects based on PRINCE2 principles. It describes the activities that a project needs based on its implementation stage. Risks analysis is also explained in one of the chapters of the book. In this book, the various stages of the risk management process are explained by providing the needing theory and figures. For example, the article's figure 1 is inspired by one of the illustrations of the book. However, the risk register model is also not illustrated in one of the pages of the book and that could be considered as a negative point.

* ''Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017)''
The book A guide to the Project Management Body of Knowledge provides detailed information on how to manage projects. The risk register framework is analyzed in the chapters of the book by providing information on the usage of the tool in the various processes of risk management. This book is a very useful guide for project management planning. It provides many details for the implementation and organization of projects.

==References==
<references/>

Risk Register analysis

2021-02-28T21:23:13Z

Dorothea Georgiadou: /* Annotated bibliography */

Developed by Dorothea Georgiadou

In an age where the economic, social, and political environment is constantly shifting, there is an urgent need to study the risks that may threaten the success of a project. It is particularly important to study the risks that may adversely affect the project and lead to events that might have as a consequence the exceeding of the agreed budget and time. For this reason, the risk management planning should identify and describe in detail the potential risks by providing the needed information for the actions that should be done for eliminating their negative impact. The high uncertainty that exists in projects necessitates the use of a management tool that will control the risks. <ref name="Pmi"> Project Mangement Institute. "Practice standard for project risk management." Project Management Institute, 2009. </ref> In this article the risk management framework ‘’Risk register’’ is explained. The risk register is a tool that covers and studies many aspects of risk management processes. More specifically, the aim of this article is to explain how this tool can be used to document the outcomes of the risk management processes. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013, Retrieved from:https://www.researchgate.net/publication/263528336_Risk_register_developement_and_implementation_for_construction_projects </ref> The article provides a description of the tool along with the reasons that it should be used. It is a framework that aims to record the information from the processes related to the identification, assessment, responding, and monitoring of potential risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. Finally, the article analyzes along with the benefits also the limitations of this risk management tool.

== Why use risk register? ==
In an ever-changing environment, a projects’ success is associated with a high level of uncertainty. In the ‘Practice Standard for Project Risk Management’, risk management is an approach that plays a vital role in the strategic and decision-making processes since adjustments in the project management planning can be done after the identification of the projects’ challenges. The risk register framework is used to support the risk management process in order to eliminate the negative impact that the various threats might have on a project. Threats could come from the external and internal environment of the company. The external risks are associated with the economic, social, political, and technological environment, while the internal threats include risks that are related to human actions and estimations. <ref name="Pmi" /> <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. For example, it is possible for people to make wrong estimations because of inexperience and underestimation of some threats. This high level of uncertainty makes it increasingly necessary to use a model that assists the risk management process in a more effective way. <ref name="Pmi" /> <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>.
=== The role of Risk Register ===
In ''‘Practice Standard for Project Risk Management’'', the risk register is defined as the framework that is used in project risk management for the documentation of the identified risks. It records all the needed information that will be the steppingstone to overcome the risks that might menace projects' success. <ref name="Pmi" /> It is worth noting that based on ''‘PRINCE2’'', the risks are divided into threats and opportunities. Threats are the risks that could have negative consequences for the project, while opportunities could bring positive outcomes to the company. <ref name="PRINCE"> Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017) Retrieved from: https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=4863041</ref> The article is mainly focused on the documentation of the various threats in the risk register. The importance of the tool is highlighted in the fact that it can assist project managers with tackling potential threats and to have a better and clearer overview of the internal and external risks that might negatively affect the success of the project. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref> The aim of the risk register is to record information related to the identification, assessment, evaluation of importance, and managing of the potential risks. <ref name="Pmi" /> <ref name="PRINCE" /> More specifically, the uncertainty that exists in projects makes it necessary to use a model that provides various information for the events that could threaten the projects. <ref name="Pmi" />

In the ''‘PMBOK guide ’ ''it is outlined that the tool risk register can be used in different phases of a project. Firstly, it can be used at a very early stage of a project in order to provide information for the risks that might be a threat. Secondly, as the project continues, new threats are recorded and documented in the risk register. In other words, it is used to update the new risks and inform the risk owners how they should monitor the new threats. Finally, it documents all the risks that have been recorded after the completion of a project. <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>

=== Elements of Risk Register===

As can be seen in figure 1, the implementation of the risk register model follows four processes. Firstly, the risks have to be identified. Secondly, they have to be assessed based on their impact and probability. After risk assessment, it is important to define the actions that must be taken, in order to manage the risks. The final process of the risk register model follows, deals with the ways the risks can be monitored. <ref name="Pmi" /> <ref name="ot" /> <ref name="PRINCE"/> The outcome of the previously mentioned processes is the input for the risk register framework.

[[File:Screenshot 2021-02-25 221935.png‎|center|thumb|310px|Figure 1: Implementation steps of Risk Register (own figure, based on <ref name="Pmi" />,<ref name="ot" /> and <ref name="PRINCE"/>) ]]

Risk register has the form of a table where each column represents different characteristics of the potential risks.<ref name="latvia"> Project Risk Register Analysis Based on the Theoretical Analysis of Project Management Notion of Risk, Juris Uzulāns, University of Latvia, 2016 Retrieved from: https://content.sciendo.com/configurable/contentpage/journals$002feb$002f29$002f1$002farticle-p43.xml </ref> In order to start building the risk register the first step is the identification of the risks. Once the potential threats are known it is vital to provide a brief description for each one. <ref name="Pmi" /> This helps the project managers not only to clarify the risks but also to understand why they are threatening the project’s success. Secondly, for the assessment of the risks, their probability and impact on the project are examined. Furthermore, in'' ‘Practice Standard for Project Risk Management’'' it is stated that the evaluation of the risk is depending on their impact and their frequency to happen.<ref name="Pmi" /> For instance, the risks that have high impact and probability to occur, are risks with higher importance than the risks with low frequency and impact. The identification of the risks’ importance is an essential element for project managers to know which risks are needed more attention and time for setting up a plan in order to overcome them. <ref name="Pmi" /> Furthermore, based on the ''‘PMBOK guide’'' the risk register also includes information about the person who must tackle every risk and the actions that he has to take to eliminate its negative consequences. <ref name="ot" /> Finally, the risks should be monitored in order to prevent unexpected events. <ref name="Pmi" /> The above elements are demanding high attention as they are mainly focused on dominant areas of the risk management process which are the identification of the threats, the evaluation of their importance, the course of action that should be taken to respond and control them. Figure 2 illustrates the risk register table based on the discussion above.

[[File:table1111.png‎|center|thumb|600px|Figure 2: Risk Register table (own figure, based on the discussion above)]]

==How Risk register is used ? ==
In order to have an in-depth understanding of the risk register, it is of utmost importance to analyse the way that it can be used. The tool aims to eliminate the negative impacts of the various threats by identifying, assessing, evaluating, and monitoring them. The following sections provide a guidance on how the four processes of risk register can be implemented.
=== 1. How to identify the risks ===
As a first step, the risks have to be identified by using the right techniques. Once this is complete, a short description of the risks that have been identified through the risk management process is provided.

''' 1.1 Risk identification '''

As it is quoted in ''‘Practice Standard for Project Risk Management’'', ''‘’ A risk cannot be managed unless it is first identified.’’'' <ref name="Pmi" /> (p.25) The identified risks are the first information that will be used in the risk register. <ref name="Pmi" /> <ref name="ot" /> It is worth noting that the risk identification process is continuous because as time passes, the number of information increases. In other words, new risks will become knowable by repeating the risk identification process in different phases of a project. <ref name="Pmi" />

In this article, three methods are used for the risk identification process and all of them are following the ''‘Practice Standard for Project Risk Management’'' <ref name="Pmi" /> (p.28):

*'''''Historical review''''': This technique is used as an analysis of events that happened in the past. When this method is used it is vital to make sure that the events that are under observation are correlated with risks that happened before in this project or in different projects from the same or different company. This method demands attention as there is the risk to compare data and risks from projects that are not closely connected to the project.
* '''''Current Assessment''''': In this method, the risk identification process is focused on analysing the project’s uncertainty based on the information that is known in this specific period of time.
*''''' Creativity Techniques''''': This approach is based on the creativity of the people who participate in the project. To be more specific, stakeholders have the chance to work individually or with other people in order to identify risks by using creative methods and thinking outside of the box.

All of the techniques mentioned above have both strong points and limitations. This means that if they are used separately, they might lead to inadequate results. Thus, the combination of the three techniques can guarantee more accurate results. <ref name="Pmi" /> (p.28)

''' 1.2 Risk description'''

The description of the identified risks is a very important component of the risk identification process. It is a way to make sure that the risks are well communicated and understood among all the stakeholders. <ref name="ppp"> Guide to Using a Risk Register, Stephanie Ray, https://www.projectmanager.com/blog/guide-using-risk-register Accessed on 19/02/2020 </ref> For instance, in a construction problem, it is identified that a potential risk could be a shock in the economy. A potential explanation is that a shock in the economy could increase the price of raw materials and as a result the project might exceed the agreed budget. As it could be observed, the description of this risk could give a better insight into what this change might impact.

=== 2. How to assess the risks ===
The assessment of the various risks could be applied by using two methods, namely, the qualitative and quantitative risk analysis. Both methods are used to evaluate risks’ importance to the project. This includes an analysis of the probability that each risk has to occur and the impact that they might have on the project. <ref name="Pmi" /> In this article, the assessment of the identified risks is following the ''‘’ Practice Standard for Project Risk Management‘’ '' and the''‘’ PMBOK guide ‘’ ''.

* '''Qualitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

In qualitative risk analysis, the risks are evaluated and ranked based on their probability, impact, and some other characteristics that have been defined before the implementation of the analysis. This analysis is implemented regularly as new threats might need to be identified. The basic components of qualitative risk analysis are the high or low probability of a risk to happen and the consequences that it might have in ''‘’ one or more project objectives such as schedule, cost, quality, or performance.’’'' <ref name="ot" /> (p.423) Additionally, in qualitative risk analysis the risks can be grouped based on various criteria. For example, they can be grouped by risks that might exceed projects’ deadlines. This way, the project management team could monitor the risks in a more effective way since not only they will know the project areas they need to pay more attention to, but they will also have a quicker response managing the threats of the several categories.

* '''Quantitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

The quantitative risk analysis is used to calculate risks’ effects on the project. While this numerical analysis is not considered vital for all the projects, it provides more pragmatistic results. The implementation of the quantitative risk analysis follows on from the qualitative risk analysis. This could be explained by the fact that in the qualitative risk analysis the risks are already prioritized and thus the most vital threats are recognized and could be calculated. The impact and the probability are calculated, and the risk register table can be updated with numerical results.

=== 3. How to respond to the risks ===

It is of utmost importance to tackle the identified risks once they have been assessed. In order to do so, it is necessary to perform a risk management plan which will include the actions for dealing with the risks and the person who is responsible to tackle them. As a first step the risks should be known by all the stakeholders. Every potential risk is assigned to the right people. These people are called risk owners and they are responsible with controlling and finding solutions for the risks they are assigned with. The risks could harm the project in various ways and for this reason, there should be a plan with responses for all of them.<ref name="Pmi" /> <ref name="ot" /> In the ''‘Practice Standard for Project Risk Management’'' it is written that ''’’ the planning entails agreeing upon the actions to be taken and the potential changes to the budget, schedule, resources, and scope which these actions might cause.’’'' <ref name="Pmi" /> (p.43) Furthermore, the actions that have to be taken for every risk should be developed at the very early stage of its identification. In other words, it is integral to have the strategies and responses in advance so that project’s time schedule will change as little as possible. <ref name="Pmi" /> The risk register includes all the responses and actions on its table. Once new risks are identified risk register is updated with new strategies that the risk owner has to follow. Moreover, throughout the lifecycle of a project, it is possible to make adjustments and corrections to the plans of the previously identified risks. <ref name="ppp" />

=== 4. How to monitor the risks ===

Risk monitoring is the last process that needs to be implemented in order to fill in the risk register table. This final step is as important as the three steps mentioned above. Risk should be monitored throughout the life cycle of a project. It is a continuous process that includes the actions that have to be taken in order to control not only the risks that already have been identified but also the new threats that have to be tamed. <ref name="Pmi" />. <ref name="ot" /> Additionally, risk monitoring is used to certify that all the risk responses are taken place when there is a need for action. This is a way to appraise the effectiveness of the responses and the risk owner in the risk management process. <ref name="Pmi" /> The process starts by checking the risk register table. The table should include the appropriate responses for every risk, otherwise, it has to be updated with the new actions that have to be taken.<ref name="Pmi" /> Moreover, it is important for the new actions and changes to be well communicated to the stakeholders and to the people responsible for that specific risks. The number of information varies at the different stages of a project. More information is available to the project managers as the project continues its processes, which means that changes can be made in the risk register. These changes will be defined during the monitoring process and will be updated and documented in the risk register by providing new information for the actions that have to be changed. <ref name="Pmi" />

In this article, three techniques are analyzed for controlling the risks. These techniques are analyzed in the ''‘PMBOK guide ’'' <ref name="ot" /> (p.456-457) :

* '''Data analysis''': This technique is used to ensure that the reserves of the project are enough to not threaten its budget and the deadlines. <ref name="ot" /> More specifically, this analysis is checking if the reserves that a project has as a backup is enough to ensure that it will have the resources to manage an unexpected event that will make its budget and time exceed the agreed limits. <ref name="Pmi" />

* '''Audits''': This method applied in order to evaluate the performance of the processes included in the risk management and hence they are recorded in the risk register. It is worth noting that this way of monitoring risks can be conducted during project meetings when the project team examines the risks. <ref name="ot" />

* '''Meetings''': During meetings, the project management team can evaluate the various risks. This is a vital process that examines the overall process of risk management planning. More specifically, the meeting can ensure that all the stakeholders have a clear overview of the risks that need to be tackled. Furthermore, it is possible that some of the identified risks happened in the past, and through the meeting, the project management team can communicate the learning outcomes and mistakes that they should avoid in the future. <ref name="ot" />

After these processes, the risk register framework is updated with the new data in order to assist the project management team with the risk management process.

==Reflections==
While many positive outcomes can arise from the use of the risk register framework, there are also some limitations that are worth mentioning. In this section, the advantages and limitations of the risk register framework are discussed.
=== Advantages ===
The risk register is used to document information about the various risks that have been identified not only at the very early stages but also throughout the whole lifecycle of the project. This is an extremely beneficial characteristic of the tool that can be used for the assessment of a project's performance as well as for the strategic and decision-making processes that are related to risk management. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> More specifically, as the project is developing, the amount of gathered information is growing which means that new risks will be identified to threaten the project's success. The risk register table is storing the information from the risks that already have been identified and evaluated, and once new treats have been found, the table is expanded with the new data. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> This could be vital for the overall success of the project since the new risk could be well communicated among the stakeholders and thus they will be informed for the new actions they have to take in order to eliminate the negative impact of the threats. Additionally, the table includes information that is the output of the qualitative risk analysis. <ref name="Pmi" /> <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref> In other words, in the qualitative analysis, it is examined how possible is for a risk to take place and the impact that it will have on the project. This analysis is used to prioritize the risks based on their importance. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> Once the risks are ranked, the stakeholders are informed of the threats that they have to pay more attention to. This means that they might have to spend more time planning a strategy around these risks as they will have a higher impact. Finally, the risk register is an advantageous tool for complex projects. When a project is very complex, it's important to use tools that could break down the planning processes. Risk register, due to its structure, provides the needed information for every risk from the moment it is identified. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref>

=== Limitations ===
The identified risks are listed based on the critical way of thinking of the people who are associated with the risk evaluation. This could be a limitation since the results on the risk register table might reflect the personal opinion of the people who implemented it and not the reality.<ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref> <ref name="fd"> Why risk registers don't do enough to help you manage risks, https://www.civilsociety.co.uk/finance/why-risk-registers-don-t-do-enough-to-help-you-manage-risks.html, Accessed on 22/02/2020 </ref> Moreover, the development of the risk register table requires a lot of time in order to insert the data from the four processes. Apart from that since the table is updated when changes are made either to the list of the identified risks or to the actions that have to be taken, it is possible that mistakes might occur when the new data are imported. Hence, the implementation of the documented results of the risk register seeks attention in order to avoid mistakes. However, the risk register is more than important when it comes to analysing the risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> This means that even though it is a time-consuming process, the outcomes of the tool can prevent threats that otherwise could have a negative impact on the project.

It is worth noting, that ignoring the limitations of the risk management tool could have a negative impact on the project. Nevertheless, it is a very important tool that should be applied in the risk management processes most or all of the time.

==Annotated bibliography==
* '' "Practice standard for project risk management." Project Management Institute, 2009.''
This book is based on the PMBOK Guide– Fourth Edition. It is a book about the risk management processes that a project has to follow. It analyses the techniques for the identification, assessment, responding, and controlling of the risks. In this book, the reader can find information for the risk register model and how it is involved in all the previously mentioned processes. Although the book provides many details on how to manage risks, it does not illustrate the risk register table. For this reason, the visualization of the table in this article is based on the theoretical outcomes of the book and not on the graphical illustrations included in it.

* ''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017)''
This book is focused on how to manage projects based on PRINCE2 principles. It describes the activities that a project needs based on its implementation stage. Risks analysis is also explained in one of the chapters of the book. In this book, the various stages of the risk management process are explained by providing the needing theory and figures. For example, the article's figure 1 is inspired by one of the illustrations of the book. However, the risk register model is also not illustrated in one of the pages of the book and that could be considered as a negative point.

* ''Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017)''
The book A guide to the Project Management Body of Knowledge provides detailed information on how to manage projects. The risk register framework is analyzed in the chapters of the book by providing information on the usage of the tool in the various processes of risk management. This book is a very useful guide for project management planning. It provides many details for the implementation and organization of projects.

==References==
<references/>

Risk Register analysis

2021-02-28T21:20:10Z

Dorothea Georgiadou: /* Annotated bibliography */

Developed by Dorothea Georgiadou

In an age where the economic, social, and political environment is constantly shifting, there is an urgent need to study the risks that may threaten the success of a project. It is particularly important to study the risks that may adversely affect the project and lead to events that might have as a consequence the exceeding of the agreed budget and time. For this reason, the risk management planning should identify and describe in detail the potential risks by providing the needed information for the actions that should be done for eliminating their negative impact. The high uncertainty that exists in projects necessitates the use of a management tool that will control the risks. <ref name="Pmi"> Project Mangement Institute. "Practice standard for project risk management." Project Management Institute, 2009. </ref> In this article the risk management framework ‘’Risk register’’ is explained. The risk register is a tool that covers and studies many aspects of risk management processes. More specifically, the aim of this article is to explain how this tool can be used to document the outcomes of the risk management processes. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013, Retrieved from:https://www.researchgate.net/publication/263528336_Risk_register_developement_and_implementation_for_construction_projects </ref> The article provides a description of the tool along with the reasons that it should be used. It is a framework that aims to record the information from the processes related to the identification, assessment, responding, and monitoring of potential risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. Finally, the article analyzes along with the benefits also the limitations of this risk management tool.

== Why use risk register? ==
In an ever-changing environment, a projects’ success is associated with a high level of uncertainty. In the ‘Practice Standard for Project Risk Management’, risk management is an approach that plays a vital role in the strategic and decision-making processes since adjustments in the project management planning can be done after the identification of the projects’ challenges. The risk register framework is used to support the risk management process in order to eliminate the negative impact that the various threats might have on a project. Threats could come from the external and internal environment of the company. The external risks are associated with the economic, social, political, and technological environment, while the internal threats include risks that are related to human actions and estimations. <ref name="Pmi" /> <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. For example, it is possible for people to make wrong estimations because of inexperience and underestimation of some threats. This high level of uncertainty makes it increasingly necessary to use a model that assists the risk management process in a more effective way. <ref name="Pmi" /> <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>.
=== The role of Risk Register ===
In ''‘Practice Standard for Project Risk Management’'', the risk register is defined as the framework that is used in project risk management for the documentation of the identified risks. It records all the needed information that will be the steppingstone to overcome the risks that might menace projects' success. <ref name="Pmi" /> It is worth noting that based on ''‘PRINCE2’'', the risks are divided into threats and opportunities. Threats are the risks that could have negative consequences for the project, while opportunities could bring positive outcomes to the company. <ref name="PRINCE"> Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017) Retrieved from: https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=4863041</ref> The article is mainly focused on the documentation of the various threats in the risk register. The importance of the tool is highlighted in the fact that it can assist project managers with tackling potential threats and to have a better and clearer overview of the internal and external risks that might negatively affect the success of the project. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref> The aim of the risk register is to record information related to the identification, assessment, evaluation of importance, and managing of the potential risks. <ref name="Pmi" /> <ref name="PRINCE" /> More specifically, the uncertainty that exists in projects makes it necessary to use a model that provides various information for the events that could threaten the projects. <ref name="Pmi" />

In the ''‘PMBOK guide ’ ''it is outlined that the tool risk register can be used in different phases of a project. Firstly, it can be used at a very early stage of a project in order to provide information for the risks that might be a threat. Secondly, as the project continues, new threats are recorded and documented in the risk register. In other words, it is used to update the new risks and inform the risk owners how they should monitor the new threats. Finally, it documents all the risks that have been recorded after the completion of a project. <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>

=== Elements of Risk Register===

As can be seen in figure 1, the implementation of the risk register model follows four processes. Firstly, the risks have to be identified. Secondly, they have to be assessed based on their impact and probability. After risk assessment, it is important to define the actions that must be taken, in order to manage the risks. The final process of the risk register model follows, deals with the ways the risks can be monitored. <ref name="Pmi" /> <ref name="ot" /> <ref name="PRINCE"/> The outcome of the previously mentioned processes is the input for the risk register framework.

[[File:Screenshot 2021-02-25 221935.png‎|center|thumb|310px|Figure 1: Implementation steps of Risk Register (own figure, based on <ref name="Pmi" />,<ref name="ot" /> and <ref name="PRINCE"/>) ]]

Risk register has the form of a table where each column represents different characteristics of the potential risks.<ref name="latvia"> Project Risk Register Analysis Based on the Theoretical Analysis of Project Management Notion of Risk, Juris Uzulāns, University of Latvia, 2016 Retrieved from: https://content.sciendo.com/configurable/contentpage/journals$002feb$002f29$002f1$002farticle-p43.xml </ref> In order to start building the risk register the first step is the identification of the risks. Once the potential threats are known it is vital to provide a brief description for each one. <ref name="Pmi" /> This helps the project managers not only to clarify the risks but also to understand why they are threatening the project’s success. Secondly, for the assessment of the risks, their probability and impact on the project are examined. Furthermore, in'' ‘Practice Standard for Project Risk Management’'' it is stated that the evaluation of the risk is depending on their impact and their frequency to happen.<ref name="Pmi" /> For instance, the risks that have high impact and probability to occur, are risks with higher importance than the risks with low frequency and impact. The identification of the risks’ importance is an essential element for project managers to know which risks are needed more attention and time for setting up a plan in order to overcome them. <ref name="Pmi" /> Furthermore, based on the ''‘PMBOK guide’'' the risk register also includes information about the person who must tackle every risk and the actions that he has to take to eliminate its negative consequences. <ref name="ot" /> Finally, the risks should be monitored in order to prevent unexpected events. <ref name="Pmi" /> The above elements are demanding high attention as they are mainly focused on dominant areas of the risk management process which are the identification of the threats, the evaluation of their importance, the course of action that should be taken to respond and control them. Figure 2 illustrates the risk register table based on the discussion above.

[[File:table1111.png‎|center|thumb|600px|Figure 2: Risk Register table (own figure, based on the discussion above)]]

==How Risk register is used ? ==
In order to have an in-depth understanding of the risk register, it is of utmost importance to analyse the way that it can be used. The tool aims to eliminate the negative impacts of the various threats by identifying, assessing, evaluating, and monitoring them. The following sections provide a guidance on how the four processes of risk register can be implemented.
=== 1. How to identify the risks ===
As a first step, the risks have to be identified by using the right techniques. Once this is complete, a short description of the risks that have been identified through the risk management process is provided.

''' 1.1 Risk identification '''

As it is quoted in ''‘Practice Standard for Project Risk Management’'', ''‘’ A risk cannot be managed unless it is first identified.’’'' <ref name="Pmi" /> (p.25) The identified risks are the first information that will be used in the risk register. <ref name="Pmi" /> <ref name="ot" /> It is worth noting that the risk identification process is continuous because as time passes, the number of information increases. In other words, new risks will become knowable by repeating the risk identification process in different phases of a project. <ref name="Pmi" />

In this article, three methods are used for the risk identification process and all of them are following the ''‘Practice Standard for Project Risk Management’'' <ref name="Pmi" /> (p.28):

*'''''Historical review''''': This technique is used as an analysis of events that happened in the past. When this method is used it is vital to make sure that the events that are under observation are correlated with risks that happened before in this project or in different projects from the same or different company. This method demands attention as there is the risk to compare data and risks from projects that are not closely connected to the project.
* '''''Current Assessment''''': In this method, the risk identification process is focused on analysing the project’s uncertainty based on the information that is known in this specific period of time.
*''''' Creativity Techniques''''': This approach is based on the creativity of the people who participate in the project. To be more specific, stakeholders have the chance to work individually or with other people in order to identify risks by using creative methods and thinking outside of the box.

All of the techniques mentioned above have both strong points and limitations. This means that if they are used separately, they might lead to inadequate results. Thus, the combination of the three techniques can guarantee more accurate results. <ref name="Pmi" /> (p.28)

''' 1.2 Risk description'''

The description of the identified risks is a very important component of the risk identification process. It is a way to make sure that the risks are well communicated and understood among all the stakeholders. <ref name="ppp"> Guide to Using a Risk Register, Stephanie Ray, https://www.projectmanager.com/blog/guide-using-risk-register Accessed on 19/02/2020 </ref> For instance, in a construction problem, it is identified that a potential risk could be a shock in the economy. A potential explanation is that a shock in the economy could increase the price of raw materials and as a result the project might exceed the agreed budget. As it could be observed, the description of this risk could give a better insight into what this change might impact.

=== 2. How to assess the risks ===
The assessment of the various risks could be applied by using two methods, namely, the qualitative and quantitative risk analysis. Both methods are used to evaluate risks’ importance to the project. This includes an analysis of the probability that each risk has to occur and the impact that they might have on the project. <ref name="Pmi" /> In this article, the assessment of the identified risks is following the ''‘’ Practice Standard for Project Risk Management‘’ '' and the''‘’ PMBOK guide ‘’ ''.

* '''Qualitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

In qualitative risk analysis, the risks are evaluated and ranked based on their probability, impact, and some other characteristics that have been defined before the implementation of the analysis. This analysis is implemented regularly as new threats might need to be identified. The basic components of qualitative risk analysis are the high or low probability of a risk to happen and the consequences that it might have in ''‘’ one or more project objectives such as schedule, cost, quality, or performance.’’'' <ref name="ot" /> (p.423) Additionally, in qualitative risk analysis the risks can be grouped based on various criteria. For example, they can be grouped by risks that might exceed projects’ deadlines. This way, the project management team could monitor the risks in a more effective way since not only they will know the project areas they need to pay more attention to, but they will also have a quicker response managing the threats of the several categories.

* '''Quantitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

The quantitative risk analysis is used to calculate risks’ effects on the project. While this numerical analysis is not considered vital for all the projects, it provides more pragmatistic results. The implementation of the quantitative risk analysis follows on from the qualitative risk analysis. This could be explained by the fact that in the qualitative risk analysis the risks are already prioritized and thus the most vital threats are recognized and could be calculated. The impact and the probability are calculated, and the risk register table can be updated with numerical results.

=== 3. How to respond to the risks ===

It is of utmost importance to tackle the identified risks once they have been assessed. In order to do so, it is necessary to perform a risk management plan which will include the actions for dealing with the risks and the person who is responsible to tackle them. As a first step the risks should be known by all the stakeholders. Every potential risk is assigned to the right people. These people are called risk owners and they are responsible with controlling and finding solutions for the risks they are assigned with. The risks could harm the project in various ways and for this reason, there should be a plan with responses for all of them.<ref name="Pmi" /> <ref name="ot" /> In the ''‘Practice Standard for Project Risk Management’'' it is written that ''’’ the planning entails agreeing upon the actions to be taken and the potential changes to the budget, schedule, resources, and scope which these actions might cause.’’'' <ref name="Pmi" /> (p.43) Furthermore, the actions that have to be taken for every risk should be developed at the very early stage of its identification. In other words, it is integral to have the strategies and responses in advance so that project’s time schedule will change as little as possible. <ref name="Pmi" /> The risk register includes all the responses and actions on its table. Once new risks are identified risk register is updated with new strategies that the risk owner has to follow. Moreover, throughout the lifecycle of a project, it is possible to make adjustments and corrections to the plans of the previously identified risks. <ref name="ppp" />

=== 4. How to monitor the risks ===

Risk monitoring is the last process that needs to be implemented in order to fill in the risk register table. This final step is as important as the three steps mentioned above. Risk should be monitored throughout the life cycle of a project. It is a continuous process that includes the actions that have to be taken in order to control not only the risks that already have been identified but also the new threats that have to be tamed. <ref name="Pmi" />. <ref name="ot" /> Additionally, risk monitoring is used to certify that all the risk responses are taken place when there is a need for action. This is a way to appraise the effectiveness of the responses and the risk owner in the risk management process. <ref name="Pmi" /> The process starts by checking the risk register table. The table should include the appropriate responses for every risk, otherwise, it has to be updated with the new actions that have to be taken.<ref name="Pmi" /> Moreover, it is important for the new actions and changes to be well communicated to the stakeholders and to the people responsible for that specific risks. The number of information varies at the different stages of a project. More information is available to the project managers as the project continues its processes, which means that changes can be made in the risk register. These changes will be defined during the monitoring process and will be updated and documented in the risk register by providing new information for the actions that have to be changed. <ref name="Pmi" />

In this article, three techniques are analyzed for controlling the risks. These techniques are analyzed in the ''‘PMBOK guide ’'' <ref name="ot" /> (p.456-457) :

* '''Data analysis''': This technique is used to ensure that the reserves of the project are enough to not threaten its budget and the deadlines. <ref name="ot" /> More specifically, this analysis is checking if the reserves that a project has as a backup is enough to ensure that it will have the resources to manage an unexpected event that will make its budget and time exceed the agreed limits. <ref name="Pmi" />

* '''Audits''': This method applied in order to evaluate the performance of the processes included in the risk management and hence they are recorded in the risk register. It is worth noting that this way of monitoring risks can be conducted during project meetings when the project team examines the risks. <ref name="ot" />

* '''Meetings''': During meetings, the project management team can evaluate the various risks. This is a vital process that examines the overall process of risk management planning. More specifically, the meeting can ensure that all the stakeholders have a clear overview of the risks that need to be tackled. Furthermore, it is possible that some of the identified risks happened in the past, and through the meeting, the project management team can communicate the learning outcomes and mistakes that they should avoid in the future. <ref name="ot" />

After these processes, the risk register framework is updated with the new data in order to assist the project management team with the risk management process.

==Reflections==
While many positive outcomes can arise from the use of the risk register framework, there are also some limitations that are worth mentioning. In this section, the advantages and limitations of the risk register framework are discussed.
=== Advantages ===
The risk register is used to document information about the various risks that have been identified not only at the very early stages but also throughout the whole lifecycle of the project. This is an extremely beneficial characteristic of the tool that can be used for the assessment of a project's performance as well as for the strategic and decision-making processes that are related to risk management. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> More specifically, as the project is developing, the amount of gathered information is growing which means that new risks will be identified to threaten the project's success. The risk register table is storing the information from the risks that already have been identified and evaluated, and once new treats have been found, the table is expanded with the new data. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> This could be vital for the overall success of the project since the new risk could be well communicated among the stakeholders and thus they will be informed for the new actions they have to take in order to eliminate the negative impact of the threats. Additionally, the table includes information that is the output of the qualitative risk analysis. <ref name="Pmi" /> <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref> In other words, in the qualitative analysis, it is examined how possible is for a risk to take place and the impact that it will have on the project. This analysis is used to prioritize the risks based on their importance. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> Once the risks are ranked, the stakeholders are informed of the threats that they have to pay more attention to. This means that they might have to spend more time planning a strategy around these risks as they will have a higher impact. Finally, the risk register is an advantageous tool for complex projects. When a project is very complex, it's important to use tools that could break down the planning processes. Risk register, due to its structure, provides the needed information for every risk from the moment it is identified. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref>

=== Limitations ===
The identified risks are listed based on the critical way of thinking of the people who are associated with the risk evaluation. This could be a limitation since the results on the risk register table might reflect the personal opinion of the people who implemented it and not the reality.<ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref> <ref name="fd"> Why risk registers don't do enough to help you manage risks, https://www.civilsociety.co.uk/finance/why-risk-registers-don-t-do-enough-to-help-you-manage-risks.html, Accessed on 22/02/2020 </ref> Moreover, the development of the risk register table requires a lot of time in order to insert the data from the four processes. Apart from that since the table is updated when changes are made either to the list of the identified risks or to the actions that have to be taken, it is possible that mistakes might occur when the new data are imported. Hence, the implementation of the documented results of the risk register seeks attention in order to avoid mistakes. However, the risk register is more than important when it comes to analysing the risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> This means that even though it is a time-consuming process, the outcomes of the tool can prevent threats that otherwise could have a negative impact on the project.

It is worth noting, that ignoring the limitations of the risk management tool could have a negative impact on the project. Nevertheless, it is a very important tool that should be applied in the risk management processes most or all of the time.

==Annotated bibliography==
* '' "Practice standard for project risk management." Project Management Institute, 2009.''
This book is based on the PMBOK Guide– Fourth Edition. It is a book about the risk management processes that a project has to follow. It analyses the techniques for the identification, assessment, responding, and controlling of the risks. In this book, the reader can find information for the risk register model and how it is involved in all the previously mentioned processes. Although the book provides many details on how to manage risks, it does not illustrate the risk register table. For this reason, the visualization of the table in this article is based on the theoretical outcomes of the book and not on the graphical illustrations included in it.

* ''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017)''
This book is focused on how to manage projects based on PRINCE2 principles. It describes the activities that a project needs based on its implementation stage. Risks analysis is also explained in one of the chapters of the book. In this book, the various stages of the risk management process are explained by providing the needing theory and figures. The design of figure 1 of the article is inspired by one of the illustrations of the book. However, the risk register model is also not illustrated in one of the pages of the book and that could be considered as a negative point.

* ''Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017)''
The book A guide to the Project Management Body of Knowledge provides detailed information on how to manage projects. The risk register framework is analyzed in the chapters of the book by providing information on the usage of the tool in the various processes of risk management. This book is a very useful guide for project management planning. It provides many details for the implementation and organization of projects.

==References==
<references/>

Risk Register analysis

2021-02-28T21:19:13Z

Dorothea Georgiadou: /* Reflections */

Developed by Dorothea Georgiadou

In an age where the economic, social, and political environment is constantly shifting, there is an urgent need to study the risks that may threaten the success of a project. It is particularly important to study the risks that may adversely affect the project and lead to events that might have as a consequence the exceeding of the agreed budget and time. For this reason, the risk management planning should identify and describe in detail the potential risks by providing the needed information for the actions that should be done for eliminating their negative impact. The high uncertainty that exists in projects necessitates the use of a management tool that will control the risks. <ref name="Pmi"> Project Mangement Institute. "Practice standard for project risk management." Project Management Institute, 2009. </ref> In this article the risk management framework ‘’Risk register’’ is explained. The risk register is a tool that covers and studies many aspects of risk management processes. More specifically, the aim of this article is to explain how this tool can be used to document the outcomes of the risk management processes. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013, Retrieved from:https://www.researchgate.net/publication/263528336_Risk_register_developement_and_implementation_for_construction_projects </ref> The article provides a description of the tool along with the reasons that it should be used. It is a framework that aims to record the information from the processes related to the identification, assessment, responding, and monitoring of potential risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. Finally, the article analyzes along with the benefits also the limitations of this risk management tool.

== Why use risk register? ==
In an ever-changing environment, a projects’ success is associated with a high level of uncertainty. In the ‘Practice Standard for Project Risk Management’, risk management is an approach that plays a vital role in the strategic and decision-making processes since adjustments in the project management planning can be done after the identification of the projects’ challenges. The risk register framework is used to support the risk management process in order to eliminate the negative impact that the various threats might have on a project. Threats could come from the external and internal environment of the company. The external risks are associated with the economic, social, political, and technological environment, while the internal threats include risks that are related to human actions and estimations. <ref name="Pmi" /> <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. For example, it is possible for people to make wrong estimations because of inexperience and underestimation of some threats. This high level of uncertainty makes it increasingly necessary to use a model that assists the risk management process in a more effective way. <ref name="Pmi" /> <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>.
=== The role of Risk Register ===
In ''‘Practice Standard for Project Risk Management’'', the risk register is defined as the framework that is used in project risk management for the documentation of the identified risks. It records all the needed information that will be the steppingstone to overcome the risks that might menace projects' success. <ref name="Pmi" /> It is worth noting that based on ''‘PRINCE2’'', the risks are divided into threats and opportunities. Threats are the risks that could have negative consequences for the project, while opportunities could bring positive outcomes to the company. <ref name="PRINCE"> Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017) Retrieved from: https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=4863041</ref> The article is mainly focused on the documentation of the various threats in the risk register. The importance of the tool is highlighted in the fact that it can assist project managers with tackling potential threats and to have a better and clearer overview of the internal and external risks that might negatively affect the success of the project. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref> The aim of the risk register is to record information related to the identification, assessment, evaluation of importance, and managing of the potential risks. <ref name="Pmi" /> <ref name="PRINCE" /> More specifically, the uncertainty that exists in projects makes it necessary to use a model that provides various information for the events that could threaten the projects. <ref name="Pmi" />

In the ''‘PMBOK guide ’ ''it is outlined that the tool risk register can be used in different phases of a project. Firstly, it can be used at a very early stage of a project in order to provide information for the risks that might be a threat. Secondly, as the project continues, new threats are recorded and documented in the risk register. In other words, it is used to update the new risks and inform the risk owners how they should monitor the new threats. Finally, it documents all the risks that have been recorded after the completion of a project. <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>

=== Elements of Risk Register===

As can be seen in figure 1, the implementation of the risk register model follows four processes. Firstly, the risks have to be identified. Secondly, they have to be assessed based on their impact and probability. After risk assessment, it is important to define the actions that must be taken, in order to manage the risks. The final process of the risk register model follows, deals with the ways the risks can be monitored. <ref name="Pmi" /> <ref name="ot" /> <ref name="PRINCE"/> The outcome of the previously mentioned processes is the input for the risk register framework.

[[File:Screenshot 2021-02-25 221935.png‎|center|thumb|310px|Figure 1: Implementation steps of Risk Register (own figure, based on <ref name="Pmi" />,<ref name="ot" /> and <ref name="PRINCE"/>) ]]

Risk register has the form of a table where each column represents different characteristics of the potential risks.<ref name="latvia"> Project Risk Register Analysis Based on the Theoretical Analysis of Project Management Notion of Risk, Juris Uzulāns, University of Latvia, 2016 Retrieved from: https://content.sciendo.com/configurable/contentpage/journals$002feb$002f29$002f1$002farticle-p43.xml </ref> In order to start building the risk register the first step is the identification of the risks. Once the potential threats are known it is vital to provide a brief description for each one. <ref name="Pmi" /> This helps the project managers not only to clarify the risks but also to understand why they are threatening the project’s success. Secondly, for the assessment of the risks, their probability and impact on the project are examined. Furthermore, in'' ‘Practice Standard for Project Risk Management’'' it is stated that the evaluation of the risk is depending on their impact and their frequency to happen.<ref name="Pmi" /> For instance, the risks that have high impact and probability to occur, are risks with higher importance than the risks with low frequency and impact. The identification of the risks’ importance is an essential element for project managers to know which risks are needed more attention and time for setting up a plan in order to overcome them. <ref name="Pmi" /> Furthermore, based on the ''‘PMBOK guide’'' the risk register also includes information about the person who must tackle every risk and the actions that he has to take to eliminate its negative consequences. <ref name="ot" /> Finally, the risks should be monitored in order to prevent unexpected events. <ref name="Pmi" /> The above elements are demanding high attention as they are mainly focused on dominant areas of the risk management process which are the identification of the threats, the evaluation of their importance, the course of action that should be taken to respond and control them. Figure 2 illustrates the risk register table based on the discussion above.

[[File:table1111.png‎|center|thumb|600px|Figure 2: Risk Register table (own figure, based on the discussion above)]]

==How Risk register is used ? ==
In order to have an in-depth understanding of the risk register, it is of utmost importance to analyse the way that it can be used. The tool aims to eliminate the negative impacts of the various threats by identifying, assessing, evaluating, and monitoring them. The following sections provide a guidance on how the four processes of risk register can be implemented.
=== 1. How to identify the risks ===
As a first step, the risks have to be identified by using the right techniques. Once this is complete, a short description of the risks that have been identified through the risk management process is provided.

''' 1.1 Risk identification '''

As it is quoted in ''‘Practice Standard for Project Risk Management’'', ''‘’ A risk cannot be managed unless it is first identified.’’'' <ref name="Pmi" /> (p.25) The identified risks are the first information that will be used in the risk register. <ref name="Pmi" /> <ref name="ot" /> It is worth noting that the risk identification process is continuous because as time passes, the number of information increases. In other words, new risks will become knowable by repeating the risk identification process in different phases of a project. <ref name="Pmi" />

In this article, three methods are used for the risk identification process and all of them are following the ''‘Practice Standard for Project Risk Management’'' <ref name="Pmi" /> (p.28):

*'''''Historical review''''': This technique is used as an analysis of events that happened in the past. When this method is used it is vital to make sure that the events that are under observation are correlated with risks that happened before in this project or in different projects from the same or different company. This method demands attention as there is the risk to compare data and risks from projects that are not closely connected to the project.
* '''''Current Assessment''''': In this method, the risk identification process is focused on analysing the project’s uncertainty based on the information that is known in this specific period of time.
*''''' Creativity Techniques''''': This approach is based on the creativity of the people who participate in the project. To be more specific, stakeholders have the chance to work individually or with other people in order to identify risks by using creative methods and thinking outside of the box.

All of the techniques mentioned above have both strong points and limitations. This means that if they are used separately, they might lead to inadequate results. Thus, the combination of the three techniques can guarantee more accurate results. <ref name="Pmi" /> (p.28)

''' 1.2 Risk description'''

The description of the identified risks is a very important component of the risk identification process. It is a way to make sure that the risks are well communicated and understood among all the stakeholders. <ref name="ppp"> Guide to Using a Risk Register, Stephanie Ray, https://www.projectmanager.com/blog/guide-using-risk-register Accessed on 19/02/2020 </ref> For instance, in a construction problem, it is identified that a potential risk could be a shock in the economy. A potential explanation is that a shock in the economy could increase the price of raw materials and as a result the project might exceed the agreed budget. As it could be observed, the description of this risk could give a better insight into what this change might impact.

=== 2. How to assess the risks ===
The assessment of the various risks could be applied by using two methods, namely, the qualitative and quantitative risk analysis. Both methods are used to evaluate risks’ importance to the project. This includes an analysis of the probability that each risk has to occur and the impact that they might have on the project. <ref name="Pmi" /> In this article, the assessment of the identified risks is following the ''‘’ Practice Standard for Project Risk Management‘’ '' and the''‘’ PMBOK guide ‘’ ''.

* '''Qualitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

In qualitative risk analysis, the risks are evaluated and ranked based on their probability, impact, and some other characteristics that have been defined before the implementation of the analysis. This analysis is implemented regularly as new threats might need to be identified. The basic components of qualitative risk analysis are the high or low probability of a risk to happen and the consequences that it might have in ''‘’ one or more project objectives such as schedule, cost, quality, or performance.’’'' <ref name="ot" /> (p.423) Additionally, in qualitative risk analysis the risks can be grouped based on various criteria. For example, they can be grouped by risks that might exceed projects’ deadlines. This way, the project management team could monitor the risks in a more effective way since not only they will know the project areas they need to pay more attention to, but they will also have a quicker response managing the threats of the several categories.

* '''Quantitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

The quantitative risk analysis is used to calculate risks’ effects on the project. While this numerical analysis is not considered vital for all the projects, it provides more pragmatistic results. The implementation of the quantitative risk analysis follows on from the qualitative risk analysis. This could be explained by the fact that in the qualitative risk analysis the risks are already prioritized and thus the most vital threats are recognized and could be calculated. The impact and the probability are calculated, and the risk register table can be updated with numerical results.

=== 3. How to respond to the risks ===

It is of utmost importance to tackle the identified risks once they have been assessed. In order to do so, it is necessary to perform a risk management plan which will include the actions for dealing with the risks and the person who is responsible to tackle them. As a first step the risks should be known by all the stakeholders. Every potential risk is assigned to the right people. These people are called risk owners and they are responsible with controlling and finding solutions for the risks they are assigned with. The risks could harm the project in various ways and for this reason, there should be a plan with responses for all of them.<ref name="Pmi" /> <ref name="ot" /> In the ''‘Practice Standard for Project Risk Management’'' it is written that ''’’ the planning entails agreeing upon the actions to be taken and the potential changes to the budget, schedule, resources, and scope which these actions might cause.’’'' <ref name="Pmi" /> (p.43) Furthermore, the actions that have to be taken for every risk should be developed at the very early stage of its identification. In other words, it is integral to have the strategies and responses in advance so that project’s time schedule will change as little as possible. <ref name="Pmi" /> The risk register includes all the responses and actions on its table. Once new risks are identified risk register is updated with new strategies that the risk owner has to follow. Moreover, throughout the lifecycle of a project, it is possible to make adjustments and corrections to the plans of the previously identified risks. <ref name="ppp" />

=== 4. How to monitor the risks ===

Risk monitoring is the last process that needs to be implemented in order to fill in the risk register table. This final step is as important as the three steps mentioned above. Risk should be monitored throughout the life cycle of a project. It is a continuous process that includes the actions that have to be taken in order to control not only the risks that already have been identified but also the new threats that have to be tamed. <ref name="Pmi" />. <ref name="ot" /> Additionally, risk monitoring is used to certify that all the risk responses are taken place when there is a need for action. This is a way to appraise the effectiveness of the responses and the risk owner in the risk management process. <ref name="Pmi" /> The process starts by checking the risk register table. The table should include the appropriate responses for every risk, otherwise, it has to be updated with the new actions that have to be taken.<ref name="Pmi" /> Moreover, it is important for the new actions and changes to be well communicated to the stakeholders and to the people responsible for that specific risks. The number of information varies at the different stages of a project. More information is available to the project managers as the project continues its processes, which means that changes can be made in the risk register. These changes will be defined during the monitoring process and will be updated and documented in the risk register by providing new information for the actions that have to be changed. <ref name="Pmi" />

In this article, three techniques are analyzed for controlling the risks. These techniques are analyzed in the ''‘PMBOK guide ’'' <ref name="ot" /> (p.456-457) :

* '''Data analysis''': This technique is used to ensure that the reserves of the project are enough to not threaten its budget and the deadlines. <ref name="ot" /> More specifically, this analysis is checking if the reserves that a project has as a backup is enough to ensure that it will have the resources to manage an unexpected event that will make its budget and time exceed the agreed limits. <ref name="Pmi" />

* '''Audits''': This method applied in order to evaluate the performance of the processes included in the risk management and hence they are recorded in the risk register. It is worth noting that this way of monitoring risks can be conducted during project meetings when the project team examines the risks. <ref name="ot" />

* '''Meetings''': During meetings, the project management team can evaluate the various risks. This is a vital process that examines the overall process of risk management planning. More specifically, the meeting can ensure that all the stakeholders have a clear overview of the risks that need to be tackled. Furthermore, it is possible that some of the identified risks happened in the past, and through the meeting, the project management team can communicate the learning outcomes and mistakes that they should avoid in the future. <ref name="ot" />

After these processes, the risk register framework is updated with the new data in order to assist the project management team with the risk management process.

==Reflections==
While many positive outcomes can arise from the use of the risk register framework, there are also some limitations that are worth mentioning. In this section, the advantages and limitations of the risk register framework are discussed.
=== Advantages ===
The risk register is used to document information about the various risks that have been identified not only at the very early stages but also throughout the whole lifecycle of the project. This is an extremely beneficial characteristic of the tool that can be used for the assessment of a project's performance as well as for the strategic and decision-making processes that are related to risk management. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> More specifically, as the project is developing, the amount of gathered information is growing which means that new risks will be identified to threaten the project's success. The risk register table is storing the information from the risks that already have been identified and evaluated, and once new treats have been found, the table is expanded with the new data. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> This could be vital for the overall success of the project since the new risk could be well communicated among the stakeholders and thus they will be informed for the new actions they have to take in order to eliminate the negative impact of the threats. Additionally, the table includes information that is the output of the qualitative risk analysis. <ref name="Pmi" /> <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref> In other words, in the qualitative analysis, it is examined how possible is for a risk to take place and the impact that it will have on the project. This analysis is used to prioritize the risks based on their importance. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> Once the risks are ranked, the stakeholders are informed of the threats that they have to pay more attention to. This means that they might have to spend more time planning a strategy around these risks as they will have a higher impact. Finally, the risk register is an advantageous tool for complex projects. When a project is very complex, it's important to use tools that could break down the planning processes. Risk register, due to its structure, provides the needed information for every risk from the moment it is identified. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref>

=== Limitations ===
The identified risks are listed based on the critical way of thinking of the people who are associated with the risk evaluation. This could be a limitation since the results on the risk register table might reflect the personal opinion of the people who implemented it and not the reality.<ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref> <ref name="fd"> Why risk registers don't do enough to help you manage risks, https://www.civilsociety.co.uk/finance/why-risk-registers-don-t-do-enough-to-help-you-manage-risks.html, Accessed on 22/02/2020 </ref> Moreover, the development of the risk register table requires a lot of time in order to insert the data from the four processes. Apart from that since the table is updated when changes are made either to the list of the identified risks or to the actions that have to be taken, it is possible that mistakes might occur when the new data are imported. Hence, the implementation of the documented results of the risk register seeks attention in order to avoid mistakes. However, the risk register is more than important when it comes to analysing the risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> This means that even though it is a time-consuming process, the outcomes of the tool can prevent threats that otherwise could have a negative impact on the project.

It is worth noting, that ignoring the limitations of the risk management tool could have a negative impact on the project. Nevertheless, it is a very important tool that should be applied in the risk management processes most or all of the time.

==Annotated bibliography==
* '' "Practice standard for project risk management." Project Management Institute, 2009.''
This book is based on the PMBOK Guide– Fourth Edition. It is a book about the risk management processes that a project has to follow. It analyses the techniques for the identification, assessment, responding, and controlling of the risks. In this book, the reader can find information for the risk register model and how it is involved in all the previously mentioned processes. Although the book provides many details of how to manage risks, it does not illustrate the risk register table. For this reason, the visualization of the table in this article is based on the theoretical outcomes of the book and not on the graphical illustrations included in it.

* ''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017)''
This book is focused on how to manage projects based on PRINCE2 principles. It describes the activities that a project needs based on its implementation stage. Risks analysis is also explained in one of the chapters of the book. In this book, the various stages of the risk management process are explained by providing the needing theory and figures. The design of figure 1 of the article is inspired by one of the illustrations of the book. However, the risk register model is also not illustrated in one of the pages of the book and that could be considered as a negative point.

* ''Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017)''
The book A guide to the Project Management Body of Knowledge provides detailed information on how to manage projects. The risk register framework is analyzed in the chapters of the book by providing information on the usage of the tool in the various processes of risk management. This book is a very useful guide for project management planning. It provides many details for the implementation and organization of projects.

==References==
<references/>

Risk Register analysis

2021-02-28T21:18:17Z

Dorothea Georgiadou: /* Advantages */

Developed by Dorothea Georgiadou

In an age where the economic, social, and political environment is constantly shifting, there is an urgent need to study the risks that may threaten the success of a project. It is particularly important to study the risks that may adversely affect the project and lead to events that might have as a consequence the exceeding of the agreed budget and time. For this reason, the risk management planning should identify and describe in detail the potential risks by providing the needed information for the actions that should be done for eliminating their negative impact. The high uncertainty that exists in projects necessitates the use of a management tool that will control the risks. <ref name="Pmi"> Project Mangement Institute. "Practice standard for project risk management." Project Management Institute, 2009. </ref> In this article the risk management framework ‘’Risk register’’ is explained. The risk register is a tool that covers and studies many aspects of risk management processes. More specifically, the aim of this article is to explain how this tool can be used to document the outcomes of the risk management processes. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013, Retrieved from:https://www.researchgate.net/publication/263528336_Risk_register_developement_and_implementation_for_construction_projects </ref> The article provides a description of the tool along with the reasons that it should be used. It is a framework that aims to record the information from the processes related to the identification, assessment, responding, and monitoring of potential risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. Finally, the article analyzes along with the benefits also the limitations of this risk management tool.

== Why use risk register? ==
In an ever-changing environment, a projects’ success is associated with a high level of uncertainty. In the ‘Practice Standard for Project Risk Management’, risk management is an approach that plays a vital role in the strategic and decision-making processes since adjustments in the project management planning can be done after the identification of the projects’ challenges. The risk register framework is used to support the risk management process in order to eliminate the negative impact that the various threats might have on a project. Threats could come from the external and internal environment of the company. The external risks are associated with the economic, social, political, and technological environment, while the internal threats include risks that are related to human actions and estimations. <ref name="Pmi" /> <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. For example, it is possible for people to make wrong estimations because of inexperience and underestimation of some threats. This high level of uncertainty makes it increasingly necessary to use a model that assists the risk management process in a more effective way. <ref name="Pmi" /> <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>.
=== The role of Risk Register ===
In ''‘Practice Standard for Project Risk Management’'', the risk register is defined as the framework that is used in project risk management for the documentation of the identified risks. It records all the needed information that will be the steppingstone to overcome the risks that might menace projects' success. <ref name="Pmi" /> It is worth noting that based on ''‘PRINCE2’'', the risks are divided into threats and opportunities. Threats are the risks that could have negative consequences for the project, while opportunities could bring positive outcomes to the company. <ref name="PRINCE"> Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017) Retrieved from: https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=4863041</ref> The article is mainly focused on the documentation of the various threats in the risk register. The importance of the tool is highlighted in the fact that it can assist project managers with tackling potential threats and to have a better and clearer overview of the internal and external risks that might negatively affect the success of the project. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref> The aim of the risk register is to record information related to the identification, assessment, evaluation of importance, and managing of the potential risks. <ref name="Pmi" /> <ref name="PRINCE" /> More specifically, the uncertainty that exists in projects makes it necessary to use a model that provides various information for the events that could threaten the projects. <ref name="Pmi" />

In the ''‘PMBOK guide ’ ''it is outlined that the tool risk register can be used in different phases of a project. Firstly, it can be used at a very early stage of a project in order to provide information for the risks that might be a threat. Secondly, as the project continues, new threats are recorded and documented in the risk register. In other words, it is used to update the new risks and inform the risk owners how they should monitor the new threats. Finally, it documents all the risks that have been recorded after the completion of a project. <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>

=== Elements of Risk Register===

As can be seen in figure 1, the implementation of the risk register model follows four processes. Firstly, the risks have to be identified. Secondly, they have to be assessed based on their impact and probability. After risk assessment, it is important to define the actions that must be taken, in order to manage the risks. The final process of the risk register model follows, deals with the ways the risks can be monitored. <ref name="Pmi" /> <ref name="ot" /> <ref name="PRINCE"/> The outcome of the previously mentioned processes is the input for the risk register framework.

[[File:Screenshot 2021-02-25 221935.png‎|center|thumb|310px|Figure 1: Implementation steps of Risk Register (own figure, based on <ref name="Pmi" />,<ref name="ot" /> and <ref name="PRINCE"/>) ]]

Risk register has the form of a table where each column represents different characteristics of the potential risks.<ref name="latvia"> Project Risk Register Analysis Based on the Theoretical Analysis of Project Management Notion of Risk, Juris Uzulāns, University of Latvia, 2016 Retrieved from: https://content.sciendo.com/configurable/contentpage/journals$002feb$002f29$002f1$002farticle-p43.xml </ref> In order to start building the risk register the first step is the identification of the risks. Once the potential threats are known it is vital to provide a brief description for each one. <ref name="Pmi" /> This helps the project managers not only to clarify the risks but also to understand why they are threatening the project’s success. Secondly, for the assessment of the risks, their probability and impact on the project are examined. Furthermore, in'' ‘Practice Standard for Project Risk Management’'' it is stated that the evaluation of the risk is depending on their impact and their frequency to happen.<ref name="Pmi" /> For instance, the risks that have high impact and probability to occur, are risks with higher importance than the risks with low frequency and impact. The identification of the risks’ importance is an essential element for project managers to know which risks are needed more attention and time for setting up a plan in order to overcome them. <ref name="Pmi" /> Furthermore, based on the ''‘PMBOK guide’'' the risk register also includes information about the person who must tackle every risk and the actions that he has to take to eliminate its negative consequences. <ref name="ot" /> Finally, the risks should be monitored in order to prevent unexpected events. <ref name="Pmi" /> The above elements are demanding high attention as they are mainly focused on dominant areas of the risk management process which are the identification of the threats, the evaluation of their importance, the course of action that should be taken to respond and control them. Figure 2 illustrates the risk register table based on the discussion above.

[[File:table1111.png‎|center|thumb|600px|Figure 2: Risk Register table (own figure, based on the discussion above)]]

==How Risk register is used ? ==
In order to have an in-depth understanding of the risk register, it is of utmost importance to analyse the way that it can be used. The tool aims to eliminate the negative impacts of the various threats by identifying, assessing, evaluating, and monitoring them. The following sections provide a guidance on how the four processes of risk register can be implemented.
=== 1. How to identify the risks ===
As a first step, the risks have to be identified by using the right techniques. Once this is complete, a short description of the risks that have been identified through the risk management process is provided.

''' 1.1 Risk identification '''

As it is quoted in ''‘Practice Standard for Project Risk Management’'', ''‘’ A risk cannot be managed unless it is first identified.’’'' <ref name="Pmi" /> (p.25) The identified risks are the first information that will be used in the risk register. <ref name="Pmi" /> <ref name="ot" /> It is worth noting that the risk identification process is continuous because as time passes, the number of information increases. In other words, new risks will become knowable by repeating the risk identification process in different phases of a project. <ref name="Pmi" />

In this article, three methods are used for the risk identification process and all of them are following the ''‘Practice Standard for Project Risk Management’'' <ref name="Pmi" /> (p.28):

*'''''Historical review''''': This technique is used as an analysis of events that happened in the past. When this method is used it is vital to make sure that the events that are under observation are correlated with risks that happened before in this project or in different projects from the same or different company. This method demands attention as there is the risk to compare data and risks from projects that are not closely connected to the project.
* '''''Current Assessment''''': In this method, the risk identification process is focused on analysing the project’s uncertainty based on the information that is known in this specific period of time.
*''''' Creativity Techniques''''': This approach is based on the creativity of the people who participate in the project. To be more specific, stakeholders have the chance to work individually or with other people in order to identify risks by using creative methods and thinking outside of the box.

All of the techniques mentioned above have both strong points and limitations. This means that if they are used separately, they might lead to inadequate results. Thus, the combination of the three techniques can guarantee more accurate results. <ref name="Pmi" /> (p.28)

''' 1.2 Risk description'''

The description of the identified risks is a very important component of the risk identification process. It is a way to make sure that the risks are well communicated and understood among all the stakeholders. <ref name="ppp"> Guide to Using a Risk Register, Stephanie Ray, https://www.projectmanager.com/blog/guide-using-risk-register Accessed on 19/02/2020 </ref> For instance, in a construction problem, it is identified that a potential risk could be a shock in the economy. A potential explanation is that a shock in the economy could increase the price of raw materials and as a result the project might exceed the agreed budget. As it could be observed, the description of this risk could give a better insight into what this change might impact.

=== 2. How to assess the risks ===
The assessment of the various risks could be applied by using two methods, namely, the qualitative and quantitative risk analysis. Both methods are used to evaluate risks’ importance to the project. This includes an analysis of the probability that each risk has to occur and the impact that they might have on the project. <ref name="Pmi" /> In this article, the assessment of the identified risks is following the ''‘’ Practice Standard for Project Risk Management‘’ '' and the''‘’ PMBOK guide ‘’ ''.

* '''Qualitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

In qualitative risk analysis, the risks are evaluated and ranked based on their probability, impact, and some other characteristics that have been defined before the implementation of the analysis. This analysis is implemented regularly as new threats might need to be identified. The basic components of qualitative risk analysis are the high or low probability of a risk to happen and the consequences that it might have in ''‘’ one or more project objectives such as schedule, cost, quality, or performance.’’'' <ref name="ot" /> (p.423) Additionally, in qualitative risk analysis the risks can be grouped based on various criteria. For example, they can be grouped by risks that might exceed projects’ deadlines. This way, the project management team could monitor the risks in a more effective way since not only they will know the project areas they need to pay more attention to, but they will also have a quicker response managing the threats of the several categories.

* '''Quantitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

The quantitative risk analysis is used to calculate risks’ effects on the project. While this numerical analysis is not considered vital for all the projects, it provides more pragmatistic results. The implementation of the quantitative risk analysis follows on from the qualitative risk analysis. This could be explained by the fact that in the qualitative risk analysis the risks are already prioritized and thus the most vital threats are recognized and could be calculated. The impact and the probability are calculated, and the risk register table can be updated with numerical results.

=== 3. How to respond to the risks ===

It is of utmost importance to tackle the identified risks once they have been assessed. In order to do so, it is necessary to perform a risk management plan which will include the actions for dealing with the risks and the person who is responsible to tackle them. As a first step the risks should be known by all the stakeholders. Every potential risk is assigned to the right people. These people are called risk owners and they are responsible with controlling and finding solutions for the risks they are assigned with. The risks could harm the project in various ways and for this reason, there should be a plan with responses for all of them.<ref name="Pmi" /> <ref name="ot" /> In the ''‘Practice Standard for Project Risk Management’'' it is written that ''’’ the planning entails agreeing upon the actions to be taken and the potential changes to the budget, schedule, resources, and scope which these actions might cause.’’'' <ref name="Pmi" /> (p.43) Furthermore, the actions that have to be taken for every risk should be developed at the very early stage of its identification. In other words, it is integral to have the strategies and responses in advance so that project’s time schedule will change as little as possible. <ref name="Pmi" /> The risk register includes all the responses and actions on its table. Once new risks are identified risk register is updated with new strategies that the risk owner has to follow. Moreover, throughout the lifecycle of a project, it is possible to make adjustments and corrections to the plans of the previously identified risks. <ref name="ppp" />

=== 4. How to monitor the risks ===

Risk monitoring is the last process that needs to be implemented in order to fill in the risk register table. This final step is as important as the three steps mentioned above. Risk should be monitored throughout the life cycle of a project. It is a continuous process that includes the actions that have to be taken in order to control not only the risks that already have been identified but also the new threats that have to be tamed. <ref name="Pmi" />. <ref name="ot" /> Additionally, risk monitoring is used to certify that all the risk responses are taken place when there is a need for action. This is a way to appraise the effectiveness of the responses and the risk owner in the risk management process. <ref name="Pmi" /> The process starts by checking the risk register table. The table should include the appropriate responses for every risk, otherwise, it has to be updated with the new actions that have to be taken.<ref name="Pmi" /> Moreover, it is important for the new actions and changes to be well communicated to the stakeholders and to the people responsible for that specific risks. The number of information varies at the different stages of a project. More information is available to the project managers as the project continues its processes, which means that changes can be made in the risk register. These changes will be defined during the monitoring process and will be updated and documented in the risk register by providing new information for the actions that have to be changed. <ref name="Pmi" />

In this article, three techniques are analyzed for controlling the risks. These techniques are analyzed in the ''‘PMBOK guide ’'' <ref name="ot" /> (p.456-457) :

* '''Data analysis''': This technique is used to ensure that the reserves of the project are enough to not threaten its budget and the deadlines. <ref name="ot" /> More specifically, this analysis is checking if the reserves that a project has as a backup is enough to ensure that it will have the resources to manage an unexpected event that will make its budget and time exceed the agreed limits. <ref name="Pmi" />

* '''Audits''': This method applied in order to evaluate the performance of the processes included in the risk management and hence they are recorded in the risk register. It is worth noting that this way of monitoring risks can be conducted during project meetings when the project team examines the risks. <ref name="ot" />

* '''Meetings''': During meetings, the project management team can evaluate the various risks. This is a vital process that examines the overall process of risk management planning. More specifically, the meeting can ensure that all the stakeholders have a clear overview of the risks that need to be tackled. Furthermore, it is possible that some of the identified risks happened in the past, and through the meeting, the project management team can communicate the learning outcomes and mistakes that they should avoid in the future. <ref name="ot" />

After these processes, the risk register framework is updated with the new data in order to assist the project management team with the risk management process.

==Reflections==
While many positive outcomes can arise from the use of the risk register framework, there are also some limitations that are worth mentioning. In this section, the advantages and limitations of the risk register framework are discussed.
=== Advantages ===
The risk register is used to document information about the various risks that have been identified not only at the very early stages but also throughout the whole lifecycle of the project. This is an extremely beneficial characteristic of the tool that can be used for the assessment of a project's performance as well as for the strategic and decision-making processes that are related to risk management. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> More specifically, as the project is developing, the amount of gathered information is growing which means that new risks will be identified to threaten the project's success. The risk register table is storing the information from the risks that already have been identified and evaluated, and once new treats have been found, the table is expanded with the new data. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> This could be vital for the overall success of the project since the new risk could be well communicated among the stakeholders and thus they will be informed for the new actions they have to take in order to eliminate the negative impact of the threats. Additionally, the table includes information that is the output of the qualitative risk analysis. <ref name="Pmi" /> <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref> <ref name="fd"> Why risk registers don't do enough to help you manage risks, https://www.civilsociety.co.uk/finance/why-risk-registers-don-t-do-enough-to-help-you-manage-risks.html, Accessed on 22/02/2020 </ref> In other words, in the qualitative analysis, it is examined how possible is for a risk to take place and the impact that it will have on the project. This analysis is used to prioritize the risks based on their importance. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> Once the risks are ranked, the stakeholders are informed of the threats that they have to pay more attention to. This means that they might have to spend more time planning a strategy around these risks as they will have a higher impact. Finally, the risk register is an advantageous tool for complex projects. When a project is very complex, it's important to use tools that could break down the planning processes. Risk register, due to its structure, provides the needed information for every risk from the moment it is identified. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref>

=== Limitations ===
The identified risks are listed based on the critical way of thinking of the people who are associated with the risk evaluation. This could be a limitation since the results on the risk register table might reflect the personal opinion of the people who implemented it and not the reality.<ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref> <ref name="fd"> Why risk registers don't do enough to help you manage risks, https://www.civilsociety.co.uk/finance/why-risk-registers-don-t-do-enough-to-help-you-manage-risks.html, Accessed on 22/02/2020 </ref> Moreover, the development of the risk register table requires a lot of time in order to insert the data from the four processes. Apart from that since the table is updated when changes are made either to the list of the identified risks or to the actions that have to be taken, it is possible that mistakes might occur when the new data are imported. Hence, the implementation of the documented results of the risk register seeks attention in order to avoid mistakes. However, the risk register is more than important when it comes to analysing the risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> This means that even though it is a time-consuming process, the outcomes of the tool can prevent threats that otherwise could have a negative impact on the project.

It is worth noting, that ignoring the limitations of the risk management tool could have a negative impact on the project. Nevertheless, it is a very important tool that should be applied in the risk management processes most or all of the time.

==Annotated bibliography==
* '' "Practice standard for project risk management." Project Management Institute, 2009.''
This book is based on the PMBOK Guide– Fourth Edition. It is a book about the risk management processes that a project has to follow. It analyses the techniques for the identification, assessment, responding, and controlling of the risks. In this book, the reader can find information for the risk register model and how it is involved in all the previously mentioned processes. Although the book provides many details of how to manage risks, it does not illustrate the risk register table. For this reason, the visualization of the table in this article is based on the theoretical outcomes of the book and not on the graphical illustrations included in it.

* ''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017)''
This book is focused on how to manage projects based on PRINCE2 principles. It describes the activities that a project needs based on its implementation stage. Risks analysis is also explained in one of the chapters of the book. In this book, the various stages of the risk management process are explained by providing the needing theory and figures. The design of figure 1 of the article is inspired by one of the illustrations of the book. However, the risk register model is also not illustrated in one of the pages of the book and that could be considered as a negative point.

* ''Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017)''
The book A guide to the Project Management Body of Knowledge provides detailed information on how to manage projects. The risk register framework is analyzed in the chapters of the book by providing information on the usage of the tool in the various processes of risk management. This book is a very useful guide for project management planning. It provides many details for the implementation and organization of projects.

==References==
<references/>

Risk Register analysis

2021-02-28T21:17:18Z

Dorothea Georgiadou: /* Advantages */

Developed by Dorothea Georgiadou

In an age where the economic, social, and political environment is constantly shifting, there is an urgent need to study the risks that may threaten the success of a project. It is particularly important to study the risks that may adversely affect the project and lead to events that might have as a consequence the exceeding of the agreed budget and time. For this reason, the risk management planning should identify and describe in detail the potential risks by providing the needed information for the actions that should be done for eliminating their negative impact. The high uncertainty that exists in projects necessitates the use of a management tool that will control the risks. <ref name="Pmi"> Project Mangement Institute. "Practice standard for project risk management." Project Management Institute, 2009. </ref> In this article the risk management framework ‘’Risk register’’ is explained. The risk register is a tool that covers and studies many aspects of risk management processes. More specifically, the aim of this article is to explain how this tool can be used to document the outcomes of the risk management processes. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013, Retrieved from:https://www.researchgate.net/publication/263528336_Risk_register_developement_and_implementation_for_construction_projects </ref> The article provides a description of the tool along with the reasons that it should be used. It is a framework that aims to record the information from the processes related to the identification, assessment, responding, and monitoring of potential risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. Finally, the article analyzes along with the benefits also the limitations of this risk management tool.

== Why use risk register? ==
In an ever-changing environment, a projects’ success is associated with a high level of uncertainty. In the ‘Practice Standard for Project Risk Management’, risk management is an approach that plays a vital role in the strategic and decision-making processes since adjustments in the project management planning can be done after the identification of the projects’ challenges. The risk register framework is used to support the risk management process in order to eliminate the negative impact that the various threats might have on a project. Threats could come from the external and internal environment of the company. The external risks are associated with the economic, social, political, and technological environment, while the internal threats include risks that are related to human actions and estimations. <ref name="Pmi" /> <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. For example, it is possible for people to make wrong estimations because of inexperience and underestimation of some threats. This high level of uncertainty makes it increasingly necessary to use a model that assists the risk management process in a more effective way. <ref name="Pmi" /> <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>.
=== The role of Risk Register ===
In ''‘Practice Standard for Project Risk Management’'', the risk register is defined as the framework that is used in project risk management for the documentation of the identified risks. It records all the needed information that will be the steppingstone to overcome the risks that might menace projects' success. <ref name="Pmi" /> It is worth noting that based on ''‘PRINCE2’'', the risks are divided into threats and opportunities. Threats are the risks that could have negative consequences for the project, while opportunities could bring positive outcomes to the company. <ref name="PRINCE"> Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017) Retrieved from: https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=4863041</ref> The article is mainly focused on the documentation of the various threats in the risk register. The importance of the tool is highlighted in the fact that it can assist project managers with tackling potential threats and to have a better and clearer overview of the internal and external risks that might negatively affect the success of the project. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref> The aim of the risk register is to record information related to the identification, assessment, evaluation of importance, and managing of the potential risks. <ref name="Pmi" /> <ref name="PRINCE" /> More specifically, the uncertainty that exists in projects makes it necessary to use a model that provides various information for the events that could threaten the projects. <ref name="Pmi" />

In the ''‘PMBOK guide ’ ''it is outlined that the tool risk register can be used in different phases of a project. Firstly, it can be used at a very early stage of a project in order to provide information for the risks that might be a threat. Secondly, as the project continues, new threats are recorded and documented in the risk register. In other words, it is used to update the new risks and inform the risk owners how they should monitor the new threats. Finally, it documents all the risks that have been recorded after the completion of a project. <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>

=== Elements of Risk Register===

As can be seen in figure 1, the implementation of the risk register model follows four processes. Firstly, the risks have to be identified. Secondly, they have to be assessed based on their impact and probability. After risk assessment, it is important to define the actions that must be taken, in order to manage the risks. The final process of the risk register model follows, deals with the ways the risks can be monitored. <ref name="Pmi" /> <ref name="ot" /> <ref name="PRINCE"/> The outcome of the previously mentioned processes is the input for the risk register framework.

[[File:Screenshot 2021-02-25 221935.png‎|center|thumb|310px|Figure 1: Implementation steps of Risk Register (own figure, based on <ref name="Pmi" />,<ref name="ot" /> and <ref name="PRINCE"/>) ]]

Risk register has the form of a table where each column represents different characteristics of the potential risks.<ref name="latvia"> Project Risk Register Analysis Based on the Theoretical Analysis of Project Management Notion of Risk, Juris Uzulāns, University of Latvia, 2016 Retrieved from: https://content.sciendo.com/configurable/contentpage/journals$002feb$002f29$002f1$002farticle-p43.xml </ref> In order to start building the risk register the first step is the identification of the risks. Once the potential threats are known it is vital to provide a brief description for each one. <ref name="Pmi" /> This helps the project managers not only to clarify the risks but also to understand why they are threatening the project’s success. Secondly, for the assessment of the risks, their probability and impact on the project are examined. Furthermore, in'' ‘Practice Standard for Project Risk Management’'' it is stated that the evaluation of the risk is depending on their impact and their frequency to happen.<ref name="Pmi" /> For instance, the risks that have high impact and probability to occur, are risks with higher importance than the risks with low frequency and impact. The identification of the risks’ importance is an essential element for project managers to know which risks are needed more attention and time for setting up a plan in order to overcome them. <ref name="Pmi" /> Furthermore, based on the ''‘PMBOK guide’'' the risk register also includes information about the person who must tackle every risk and the actions that he has to take to eliminate its negative consequences. <ref name="ot" /> Finally, the risks should be monitored in order to prevent unexpected events. <ref name="Pmi" /> The above elements are demanding high attention as they are mainly focused on dominant areas of the risk management process which are the identification of the threats, the evaluation of their importance, the course of action that should be taken to respond and control them. Figure 2 illustrates the risk register table based on the discussion above.

[[File:table1111.png‎|center|thumb|600px|Figure 2: Risk Register table (own figure, based on the discussion above)]]

==How Risk register is used ? ==
In order to have an in-depth understanding of the risk register, it is of utmost importance to analyse the way that it can be used. The tool aims to eliminate the negative impacts of the various threats by identifying, assessing, evaluating, and monitoring them. The following sections provide a guidance on how the four processes of risk register can be implemented.
=== 1. How to identify the risks ===
As a first step, the risks have to be identified by using the right techniques. Once this is complete, a short description of the risks that have been identified through the risk management process is provided.

''' 1.1 Risk identification '''

As it is quoted in ''‘Practice Standard for Project Risk Management’'', ''‘’ A risk cannot be managed unless it is first identified.’’'' <ref name="Pmi" /> (p.25) The identified risks are the first information that will be used in the risk register. <ref name="Pmi" /> <ref name="ot" /> It is worth noting that the risk identification process is continuous because as time passes, the number of information increases. In other words, new risks will become knowable by repeating the risk identification process in different phases of a project. <ref name="Pmi" />

In this article, three methods are used for the risk identification process and all of them are following the ''‘Practice Standard for Project Risk Management’'' <ref name="Pmi" /> (p.28):

*'''''Historical review''''': This technique is used as an analysis of events that happened in the past. When this method is used it is vital to make sure that the events that are under observation are correlated with risks that happened before in this project or in different projects from the same or different company. This method demands attention as there is the risk to compare data and risks from projects that are not closely connected to the project.
* '''''Current Assessment''''': In this method, the risk identification process is focused on analysing the project’s uncertainty based on the information that is known in this specific period of time.
*''''' Creativity Techniques''''': This approach is based on the creativity of the people who participate in the project. To be more specific, stakeholders have the chance to work individually or with other people in order to identify risks by using creative methods and thinking outside of the box.

All of the techniques mentioned above have both strong points and limitations. This means that if they are used separately, they might lead to inadequate results. Thus, the combination of the three techniques can guarantee more accurate results. <ref name="Pmi" /> (p.28)

''' 1.2 Risk description'''

The description of the identified risks is a very important component of the risk identification process. It is a way to make sure that the risks are well communicated and understood among all the stakeholders. <ref name="ppp"> Guide to Using a Risk Register, Stephanie Ray, https://www.projectmanager.com/blog/guide-using-risk-register Accessed on 19/02/2020 </ref> For instance, in a construction problem, it is identified that a potential risk could be a shock in the economy. A potential explanation is that a shock in the economy could increase the price of raw materials and as a result the project might exceed the agreed budget. As it could be observed, the description of this risk could give a better insight into what this change might impact.

=== 2. How to assess the risks ===
The assessment of the various risks could be applied by using two methods, namely, the qualitative and quantitative risk analysis. Both methods are used to evaluate risks’ importance to the project. This includes an analysis of the probability that each risk has to occur and the impact that they might have on the project. <ref name="Pmi" /> In this article, the assessment of the identified risks is following the ''‘’ Practice Standard for Project Risk Management‘’ '' and the''‘’ PMBOK guide ‘’ ''.

* '''Qualitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

In qualitative risk analysis, the risks are evaluated and ranked based on their probability, impact, and some other characteristics that have been defined before the implementation of the analysis. This analysis is implemented regularly as new threats might need to be identified. The basic components of qualitative risk analysis are the high or low probability of a risk to happen and the consequences that it might have in ''‘’ one or more project objectives such as schedule, cost, quality, or performance.’’'' <ref name="ot" /> (p.423) Additionally, in qualitative risk analysis the risks can be grouped based on various criteria. For example, they can be grouped by risks that might exceed projects’ deadlines. This way, the project management team could monitor the risks in a more effective way since not only they will know the project areas they need to pay more attention to, but they will also have a quicker response managing the threats of the several categories.

* '''Quantitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

The quantitative risk analysis is used to calculate risks’ effects on the project. While this numerical analysis is not considered vital for all the projects, it provides more pragmatistic results. The implementation of the quantitative risk analysis follows on from the qualitative risk analysis. This could be explained by the fact that in the qualitative risk analysis the risks are already prioritized and thus the most vital threats are recognized and could be calculated. The impact and the probability are calculated, and the risk register table can be updated with numerical results.

=== 3. How to respond to the risks ===

It is of utmost importance to tackle the identified risks once they have been assessed. In order to do so, it is necessary to perform a risk management plan which will include the actions for dealing with the risks and the person who is responsible to tackle them. As a first step the risks should be known by all the stakeholders. Every potential risk is assigned to the right people. These people are called risk owners and they are responsible with controlling and finding solutions for the risks they are assigned with. The risks could harm the project in various ways and for this reason, there should be a plan with responses for all of them.<ref name="Pmi" /> <ref name="ot" /> In the ''‘Practice Standard for Project Risk Management’'' it is written that ''’’ the planning entails agreeing upon the actions to be taken and the potential changes to the budget, schedule, resources, and scope which these actions might cause.’’'' <ref name="Pmi" /> (p.43) Furthermore, the actions that have to be taken for every risk should be developed at the very early stage of its identification. In other words, it is integral to have the strategies and responses in advance so that project’s time schedule will change as little as possible. <ref name="Pmi" /> The risk register includes all the responses and actions on its table. Once new risks are identified risk register is updated with new strategies that the risk owner has to follow. Moreover, throughout the lifecycle of a project, it is possible to make adjustments and corrections to the plans of the previously identified risks. <ref name="ppp" />

=== 4. How to monitor the risks ===

Risk monitoring is the last process that needs to be implemented in order to fill in the risk register table. This final step is as important as the three steps mentioned above. Risk should be monitored throughout the life cycle of a project. It is a continuous process that includes the actions that have to be taken in order to control not only the risks that already have been identified but also the new threats that have to be tamed. <ref name="Pmi" />. <ref name="ot" /> Additionally, risk monitoring is used to certify that all the risk responses are taken place when there is a need for action. This is a way to appraise the effectiveness of the responses and the risk owner in the risk management process. <ref name="Pmi" /> The process starts by checking the risk register table. The table should include the appropriate responses for every risk, otherwise, it has to be updated with the new actions that have to be taken.<ref name="Pmi" /> Moreover, it is important for the new actions and changes to be well communicated to the stakeholders and to the people responsible for that specific risks. The number of information varies at the different stages of a project. More information is available to the project managers as the project continues its processes, which means that changes can be made in the risk register. These changes will be defined during the monitoring process and will be updated and documented in the risk register by providing new information for the actions that have to be changed. <ref name="Pmi" />

In this article, three techniques are analyzed for controlling the risks. These techniques are analyzed in the ''‘PMBOK guide ’'' <ref name="ot" /> (p.456-457) :

* '''Data analysis''': This technique is used to ensure that the reserves of the project are enough to not threaten its budget and the deadlines. <ref name="ot" /> More specifically, this analysis is checking if the reserves that a project has as a backup is enough to ensure that it will have the resources to manage an unexpected event that will make its budget and time exceed the agreed limits. <ref name="Pmi" />

* '''Audits''': This method applied in order to evaluate the performance of the processes included in the risk management and hence they are recorded in the risk register. It is worth noting that this way of monitoring risks can be conducted during project meetings when the project team examines the risks. <ref name="ot" />

* '''Meetings''': During meetings, the project management team can evaluate the various risks. This is a vital process that examines the overall process of risk management planning. More specifically, the meeting can ensure that all the stakeholders have a clear overview of the risks that need to be tackled. Furthermore, it is possible that some of the identified risks happened in the past, and through the meeting, the project management team can communicate the learning outcomes and mistakes that they should avoid in the future. <ref name="ot" />

After these processes, the risk register framework is updated with the new data in order to assist the project management team with the risk management process.

==Reflections==
While many positive outcomes can arise from the use of the risk register framework, there are also some limitations that are worth mentioning. In this section, the advantages and limitations of the risk register framework are discussed.
=== Advantages ===
The risk register is used to document information about the various risks that have been identified not only at the very early stages but also throughout the whole lifecycle of the project. This is an extremely beneficial characteristic of the tool that can be used for the assessment of a project's performance as well as for the strategic and decision-making processes that are related to risk management. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> More specifically, as the project is developing, the amount of gathered information is growing which means that new risks will be identified to threaten the project's success. The risk register table is storing the information from the risks that already have been identified and evaluated, and once new treats have been found, the table is expanded with the new data. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> This could be vital for the overall success of the project since the new risk could be well communicated among the stakeholders and thus they will be informed for the new actions they have to take in order to eliminate the negative impact of the threats. Additionally, the table includes information that is the output of the qualitative risk analysis. <ref name="Pmi" /> In other words, in the qualitative analysis, it is examined how possible is for a risk to take place and the impact that it will have on the project. This analysis is used to prioritize the risks based on their importance. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> Once the risks are ranked, the stakeholders are informed of the threats that they have to pay more attention to. This means that they might have to spend more time planning a strategy around these risks as they will have a higher impact. Finally, the risk register is an advantageous tool for complex projects. When a project is very complex, it's important to use tools that could break down the planning processes. Risk register, due to its structure, provides the needed information for every risk from the moment it is identified. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref>

=== Limitations ===
The identified risks are listed based on the critical way of thinking of the people who are associated with the risk evaluation. This could be a limitation since the results on the risk register table might reflect the personal opinion of the people who implemented it and not the reality.<ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref> <ref name="fd"> Why risk registers don't do enough to help you manage risks, https://www.civilsociety.co.uk/finance/why-risk-registers-don-t-do-enough-to-help-you-manage-risks.html, Accessed on 22/02/2020 </ref> Moreover, the development of the risk register table requires a lot of time in order to insert the data from the four processes. Apart from that since the table is updated when changes are made either to the list of the identified risks or to the actions that have to be taken, it is possible that mistakes might occur when the new data are imported. Hence, the implementation of the documented results of the risk register seeks attention in order to avoid mistakes. However, the risk register is more than important when it comes to analysing the risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> This means that even though it is a time-consuming process, the outcomes of the tool can prevent threats that otherwise could have a negative impact on the project.

It is worth noting, that ignoring the limitations of the risk management tool could have a negative impact on the project. Nevertheless, it is a very important tool that should be applied in the risk management processes most or all of the time.

==Annotated bibliography==
* '' "Practice standard for project risk management." Project Management Institute, 2009.''
This book is based on the PMBOK Guide– Fourth Edition. It is a book about the risk management processes that a project has to follow. It analyses the techniques for the identification, assessment, responding, and controlling of the risks. In this book, the reader can find information for the risk register model and how it is involved in all the previously mentioned processes. Although the book provides many details of how to manage risks, it does not illustrate the risk register table. For this reason, the visualization of the table in this article is based on the theoretical outcomes of the book and not on the graphical illustrations included in it.

* ''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017)''
This book is focused on how to manage projects based on PRINCE2 principles. It describes the activities that a project needs based on its implementation stage. Risks analysis is also explained in one of the chapters of the book. In this book, the various stages of the risk management process are explained by providing the needing theory and figures. The design of figure 1 of the article is inspired by one of the illustrations of the book. However, the risk register model is also not illustrated in one of the pages of the book and that could be considered as a negative point.

* ''Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017)''
The book A guide to the Project Management Body of Knowledge provides detailed information on how to manage projects. The risk register framework is analyzed in the chapters of the book by providing information on the usage of the tool in the various processes of risk management. This book is a very useful guide for project management planning. It provides many details for the implementation and organization of projects.

==References==
<references/>

SWOT Analysis Guide

2021-02-28T20:48:02Z

Dorothea Georgiadou: /* Advantages */

== Abstract ==
SWOT consists a strategic management tool, mainly used to identify risks during the data analysis process. The acronym of the 4-box strategy development framework stands for Strengths, Weaknesses, Opportunities and Threats and is possible to be applied to different industries, such as commerce, production, planning and voluntary organizations. The first emergence of the term in the literature is traced back to 1960 to investigate what went wrong with corporate planning, funded by the Fortune 500 companies while creating a new system to support management change. Over the past decade, SWOT research has focused on analyzing organizations for recommended strategic actions.

As with every tool or technique, SWOT has also its advantages and limitations. On the one hand, it is an interactional analysis technique that makes macro evaluations possible, in a road from the general perspective and solutions to the more detailed, uncovering opportunities. On the other hand, it has been criticized as prone to bias with questioned validity due to the quantity of different identified factors or failure to easily include dynamic and structural changes in a world based on competition.

The following article aims to investigate the process of conducting a SWOT analysis through a literature review, in order to present a short guide for its implementation. By analyzing the potentials of this tool’s usage, some practical implications are presented, mainly relevant to the combination of SWOT with other strategic planning tools. In addition, the author’s reflections are presented in an attempt to discuss the value and potential improvements in the use of the tool.

== Introduction ==
Strategic planning is a set of concepts, procedures and tools to be used in order for a company/organization to achieve its goals <ref name="Bryson"> Bryson, J.M. (2003). Strategic Planning and Management. In B. Guy Peters and John Pierre, Handbook of Public Administration, pp. 38- 47, London: SAGE Publications Ltd </ref> and is a function of all managers at all levels of an organization <ref name="Steiner"> Steiner, G.A. (1979). Strategic planning: What every manager should know. A step-by-step Guide. New York: Free Press </ref>. While being a process that deals with the futurity of current decisions, it is also a bulwark to support strategic management <ref name="Steiner"> Steiner, G.A. (1979). Strategic planning: What every manager should know. A step-by-step Guide. New York: Free Press </ref>.

Strategic management is a continuous process of an organization to formulate and evaluate decisions and plans to achieve a competitive advantage by being proactive (David, 2003; Dyer et al., 2017). The strategic management process is a sequential set of analyses and choices which includes the development of a vision and a mission, translated into a setting of long-term objectives and followed by a strategy crafting to achieve the targeted performance. Next steps are the strategy’s implementation and execution as well as the necessary performance evaluation to review the situation and initiate corrective adjustments (Preble, 2003).

Shedding light to the step of formulating a strategy, the implementation of a thorough external and internal analysis is involved. By conducting an external analysis, the organization is under a process of identifying potential threats and opportunities, focusing especially in the competition and customer analysis, respectively (Dyer et al., 2017). On the other hand, the internal analysis supports the organization to identify its strengths and weaknesses as well as its competitive (dis)advantages. The combined results are often summarized in a SWOT analysis, which consists a strategic management tool, mainly used to identify risks during the data analysis process (Dyer et al., 2017; Helms & Nixon, 2010; Project Management Institute, 2017).

Based on the direct connection of SWOT with strategic management processes, an important notation is that the implementation of the tool does not lead itself to the development of a strategy (Sarsby, 2016). An analysis interpretation as well as decision making, consist independent steps to be followed by the stakeholders.

== Historical development ==
The origin of SWOT analysis is difficult to be traced but the literature review places its emergence mostly back in 1950s and 1960s in the Harvard Business School environment, and mainly associated with Kenneth Andrews, Philip Selznick, Alfred DuPont Chandler and Harry Igor Ansoff (Madsen, 2016; Araştırmalar Dergici, 2017). Although SWOT is highly related to the Harvard Business School, it is worth mentioning that Stanford Research Institute conducted research funded by several Fortune 500 companies in an attempt to boost planning practices and avoid failures. The results were classified into four categories, with a resulting acronym ‘SOFT’ derived from Satisfactory (S), Opportunity (O), Fault (F) and Threat (T). In 1964, Urick and Orr decided to replace Fault (F) for Weakness (W) and that led to today’s well-recognized acronym SWOT (Chermack & Kasshanna, 2007).

Henry Mintzberg classified a preliminary form of SWOT as the main instrument of the Design School of Strategy and criticized the tool as an underlying cause to formalize the strategy making process (Hill & Westbrook, 1997). However, from the mid 60’s, Kenneth Andrews of Harvard Business School, in an attempt to combine competitive thinking with questions of strategy, created with his team the known SWOT analysis, supporting that the most suitable strategy is the one enabling harmonization between the different components of the matrix (Araştırmalar Dergici, 2017).

Following the tool’s timeline, in the 1980s it was used to support SME to create business and market plans, while in the 1990s the tool was also used in the regional development processes, NGOs and projects’ formulation. After the 1990s, the need to the development of such analysis was revealed by criticisms, with number of suggestions relating to the combination of SWOT’s usage with other analysis techniques such as Porter’s Five Forces Model, Cross Impact Analysis, etc. (Araştırmalar Dergici, 2017).
During the years, ‘SWOT has essentially remained unchanged even though many models and frameworks have emerged - these are all variations on the same theme’ (Chermack & Kasshanna, 2007). Despite its different forms and development, it remains a fundamental strategic framework, which contributes to explore new possibilities and initiate new strategies.

== The SWOT framework ==
The analysis of the future constitutes a process which intrigue individuals but also businesses and organizations. The implementation of SWOT analysis forms an alternative to evaluate results from present and future-oriented views (Züst & Troxler, 2006).

=== SWOT Analysis components ===

The acronym of the 4-box strategy development framework stands for Strengths, Weaknesses, Opportunities and Threats. It consists ‘a data gathering framework which records input factors’ (Sarsby, 2016). The most common template of a SWOT analysis is a 2x2 matrix where the rows distinguish in internal or external factors while the columns distinguish between helpful and harmful factors (depending on the context or objective of the analysis). As internal factors, strengths and weaknesses could be characterized as organizational, while the external factors (opportunities and threats) could be characterized as environmental. The SWOT matrix gives the opportunity to examine the interaction between the individual strengths and weaknesses of the system and the opportunities and threats of the future. Pairs of internal and external factors that ‘have the same cause most likely need similar or the same actions’ (Züst & Troxler, 2006).

==== ''Strengths'' ====
Strengths are internal and helpful factors identified in the analysis objective. In this category, organizations might include financial strengths, technological advantages, customer services and human resources (Sarsby, 2016). In general, the characteristics that render an organization more efficient and effective than competitors are included in its strengths (Araştırmalar Dergici, 2017). In relation to the other matrix components, strengths could potentially support an opportunity or contribute to overcome a threat (Sarsby, 2016).

==== ''Weaknesses'' ====
Weaknesses are internal and harmful factors identified in the analysis objective. In this category might be included financial struggles, dated technology, poor customer services and skill shortages related to human resources (Sarsby, 2016). Characteristics included in this category result in lack of competencies and effective performance. Consequently, the identification of weaknesses is highly important as crafting a strategy based on a weakness could lead the company to ‘die quickly’. In relation to the other matrix components, weaknesses complicate the process of taking advantage of an opportunity and are factors more vulnerable to threats (Sarsby, 2016).

==== ''Opportunities'' ====
Opportunities are external and helpful factors, lacking the possibility of control, but if handled right may result to desired results. Opportunities may arise from different resources such as trends, innovations etc. (Sarsby, 2016). Regarding the relation with the other matrix components ‘opportunities are conditions in the external environment that allow an organization to take advantage of organizational strengths, overcome organizational weaknesses or neutralize environmental threats’ (Harrison & St. John, 2004: 164).

==== ''Threats'' ====
Threats are external and harmful factors, over which there is no control (Sarsby, 2016). In relation to the other matrix components, they constitute a risk for opportunities or even organizational strengths.

=== Context of use ===
SWOT analysis is the commonest practical analytical tool for strategic planning, which is used by executives and consultants in different organizations as it is a simple and structured approach to evaluate a company’s strategic position and competitive advantage (Piercy & Giels, 1989). In the form of brainstorming sessions, the tool could be characterized as a dynamic process for decision-making under a specific context, as a Strength in one case could be a Weakness in another (Chermack & Kasshanna, 2007; Sarsby, 2016). The context and the purpose play a vital role in the SWOT analysis (Sarsby, 2016).

Despite a company’s size and general characteristics, there are different general guidelines proposed in the existing literature related to steps and rules to be followed to extract the maximum outcome during a SWOT analysis.

The general steps are described in an attempt to provide a general flow model of SWOT analysis (Chermack & Kasshanna, 2007):
1. Define clearly the main objective and purpose of the analysis: failure to correct identification may lead to resource waste
2. Explain procedure to different stakeholders: as long as the objective is approved by all stakeholders, there is a need to communicate the tool’s nature to set a common ground in the team
3. Brainstorm individually and list, in a 2 by 2 matrix, organization’s strengths, weaknesses, opportunities and threats: ask participants to work individually in a worksheet to record strengths, weaknesses, opportunities and threats the organization is facing currently. Help questions could be: What to we do well? What could we improve? What trends could you take advantage of? What is your competition doing?
4. Combine individuals worksheet in a common document: incorporate all responses in a common worksheet and distribute it to each participant
5. Trigger team’s communication through dialogue and debate related to each item’s classification: facilitate strategic dialogue to explore reasons behind individuals’ viewpoints and reach a decision
6. Develop and decide particular actions to forward the process

Besides the above-described procedure, in order to produce dynamic results through a SWOT analysis, a number of ‘rules’ to be followed, during each step, are presented below (Piercy & Giels, 1989):
• Focused SWOTs: thoroughly defined evaluated area to maximize productivity of the analysis
• Shared vision: idea polling, reveal team consensus, team communication and agreement
• Customer orientation: include in the evaluation of strengths and weaknesses, resources or capabilities recognized by the interested customer
• Environmental analysis: include in the identification of opportunities and threats relevant to the customer
• Structured strategy generation: after the completion of the matrix investigate matching, conversion and creative strategies

== Discussion ==
=== Advantages ===
Although an assessment of SWOT’s effectiveness is not an easy task, due to its numerous advantages, SWOT has been characterized as ‘the most widely used strategy tool in modern times’ (Chermack & Kasshanna, 2007; Sarsby, 2016). More specifically:
* It consists a simple technique as its implementation does not require an in-depth scientific knowledge (Piercy & Giels, 1989).
*It is a flexible model which can incorporate corporate or market information systems on request (Piercy & Giels, 1989).
*Easy method to structure complicated information such as qualitative and quantitative data, etc. (Piercy & Giels, 1989).
*The field of application covers many levels of an organization (from an individual to a corporate strategy) and different depths of analysis (Sarsby, 2016).
*Its visualization facilitates a holistic overview of the process and further communication of it with interested participants (Sarsby, 2016).
*It can be used as a guide to build on strengths, correct weaknesses, recognize and exploit new opportunities and protect against threats.

=== Disadvantages & Limitations ===
Despite its advantages based on its simplicity and the variety of collective information included, SWOT had also received a significant amount of criticism. A few of this include:
• Prompt to bias matrix completion due to individuals’ perceptions, beliefs and preferences (Sarsby, 2016).
• A pool of data collection without separating analysis elements and their evaluation, resulting to a long list (Sarsby, 2016; Hill & Westbrook, 1997).
• Tool usage has become ‘sloppy and unfocused’ (Piercy & Giels, 1989).
• Lack of prioritization or weight of identified of factors, giving the same importance to all of them (Hill & Westbrook, 1997).
• There is not a requirement to support statements with data (Hill & Westbrook, 1997). Consequently, it is also possible to list the same factor as a strength or weakness, depending on the viewpoint.
• As SWOT records facts of a specific timeframe, there is need for updates to maintain and develop the analysis.

=== Reflections ===
The following figure is an attempt to implement a SWOT analysis for the SWOT analysis tool, to reflect on the value of its usage. While classifying the factors in the four quadrants, strengths such as ‘visualization’ and weaknesses such as the difficulty of brainstorming whether a factor is a strength or weakness, became clearly apparent.
[[File:SWOT_for_the_SWOT.png‎|center|thumb|310px|Figure 1: SWOT for the SWOT (own figure based on the discusions above ) ]]

== References ==
<references/>
Araştırmalar Dergici, U.S. (2017). SWOT Analysis: A theoretical review, The Journal of International Social Research, 10 (51), pp. 994-1006. doi: 10.17719/jisr.2017.1832

Bryson, J.M. (2003). Strategic Planning and Management. In B. Guy Peters and John Pierre, Handbook of Public Administration, pp. 38- 47, London: SAGE Publications Ltd.

Chermack, T.H, Kasshanna, B.K. (2007). The Use and Misuse of SWOT Analysis and Implications for HRD Professionals, Human Resource Development International, 10 (4), pp. 383-399, doi: 10.1080/13678860701718760

David, F.R. (2003). Strategic Management-Concepts and Cases (9th Edition). USA: Pearson Education.

Dyer, J.H, Godfrey, P., Jensen, R., Bryce, D. (2017). Strategic Management: Concepts and Cases (2nd Edition). USA: Wiley

Helms, M.M. and Nixon, J. (2010). Exploring SWOT analysis – where are we now? A review of academic research from the last decade, Journal of Strategy and Management, 3 (3), pp. 215-251. https://doi.org/10.1108/17554251011064837

Hill, T., Westbrook, R. (1997). SWOT analysis: It's time for a product recall, Long Range Planning, 30 (1), pp. 46-52. doi: 10.1016/S0024-6301(96)00095-7

Madsen, D.Ø. (2016). SWOT Analysis: A Management Fashion Perspective. International Journal of Business Research, 16 (1), pp.39-56. doi: 10.18374/IJBR-16-1.3

Piercy, N., Giels, W. (1989). Making SWOT Analysis Work, Marketing Intelligence & Planning, 7 (5/6), pp. 5-7. doi: 10.1108/EUM0000000001042

Preble, J.F. (2003). Integrating the Crisis Management Perspective into the Strategic Management Process. Journal of Management Studies, 34(5), pp. 769-791. doi: 10.1111/1467-6486.00071

Project Management Institute, Inc.. (2017). Guide to the Project Management Body of Knowledge (PMBOK® Guide) (6th Edition), pp 414. Project Management Institute, Inc. (PMI). Retrieved from https://app.knovel.com/hotlink/toc/id:kpGPMBKP02/guide-project-management/guide-project-management

Sarsby, A. (2016). Swot Analysis : A Guide to Swot for Business Studies Students. United Kingdom: Spectaris Ltd.

Steiner, G.A. (1979). Strategic planning: What every manager should know. A step-by-step Guide. New York: Free Press.

Züst, R., Troxler, P. (2006). No More Muddling Through. Dordrecht: Springer.

[[Category:SWOT Analysis]] [[Category:Strategic management]]

SWOT Analysis Guide

2021-02-28T20:46:05Z

Dorothea Georgiadou: /* Reflections */

== Abstract ==
SWOT consists a strategic management tool, mainly used to identify risks during the data analysis process. The acronym of the 4-box strategy development framework stands for Strengths, Weaknesses, Opportunities and Threats and is possible to be applied to different industries, such as commerce, production, planning and voluntary organizations. The first emergence of the term in the literature is traced back to 1960 to investigate what went wrong with corporate planning, funded by the Fortune 500 companies while creating a new system to support management change. Over the past decade, SWOT research has focused on analyzing organizations for recommended strategic actions.

As with every tool or technique, SWOT has also its advantages and limitations. On the one hand, it is an interactional analysis technique that makes macro evaluations possible, in a road from the general perspective and solutions to the more detailed, uncovering opportunities. On the other hand, it has been criticized as prone to bias with questioned validity due to the quantity of different identified factors or failure to easily include dynamic and structural changes in a world based on competition.

The following article aims to investigate the process of conducting a SWOT analysis through a literature review, in order to present a short guide for its implementation. By analyzing the potentials of this tool’s usage, some practical implications are presented, mainly relevant to the combination of SWOT with other strategic planning tools. In addition, the author’s reflections are presented in an attempt to discuss the value and potential improvements in the use of the tool.

== Introduction ==
Strategic planning is a set of concepts, procedures and tools to be used in order for a company/organization to achieve its goals <ref name="Bryson"> Bryson, J.M. (2003). Strategic Planning and Management. In B. Guy Peters and John Pierre, Handbook of Public Administration, pp. 38- 47, London: SAGE Publications Ltd </ref> and is a function of all managers at all levels of an organization <ref name="Steiner"> Steiner, G.A. (1979). Strategic planning: What every manager should know. A step-by-step Guide. New York: Free Press </ref>. While being a process that deals with the futurity of current decisions, it is also a bulwark to support strategic management <ref name="Steiner"> Steiner, G.A. (1979). Strategic planning: What every manager should know. A step-by-step Guide. New York: Free Press </ref>.

Strategic management is a continuous process of an organization to formulate and evaluate decisions and plans to achieve a competitive advantage by being proactive (David, 2003; Dyer et al., 2017). The strategic management process is a sequential set of analyses and choices which includes the development of a vision and a mission, translated into a setting of long-term objectives and followed by a strategy crafting to achieve the targeted performance. Next steps are the strategy’s implementation and execution as well as the necessary performance evaluation to review the situation and initiate corrective adjustments (Preble, 2003).

Shedding light to the step of formulating a strategy, the implementation of a thorough external and internal analysis is involved. By conducting an external analysis, the organization is under a process of identifying potential threats and opportunities, focusing especially in the competition and customer analysis, respectively (Dyer et al., 2017). On the other hand, the internal analysis supports the organization to identify its strengths and weaknesses as well as its competitive (dis)advantages. The combined results are often summarized in a SWOT analysis, which consists a strategic management tool, mainly used to identify risks during the data analysis process (Dyer et al., 2017; Helms & Nixon, 2010; Project Management Institute, 2017).

Based on the direct connection of SWOT with strategic management processes, an important notation is that the implementation of the tool does not lead itself to the development of a strategy (Sarsby, 2016). An analysis interpretation as well as decision making, consist independent steps to be followed by the stakeholders.

== Historical development ==
The origin of SWOT analysis is difficult to be traced but the literature review places its emergence mostly back in 1950s and 1960s in the Harvard Business School environment, and mainly associated with Kenneth Andrews, Philip Selznick, Alfred DuPont Chandler and Harry Igor Ansoff (Madsen, 2016; Araştırmalar Dergici, 2017). Although SWOT is highly related to the Harvard Business School, it is worth mentioning that Stanford Research Institute conducted research funded by several Fortune 500 companies in an attempt to boost planning practices and avoid failures. The results were classified into four categories, with a resulting acronym ‘SOFT’ derived from Satisfactory (S), Opportunity (O), Fault (F) and Threat (T). In 1964, Urick and Orr decided to replace Fault (F) for Weakness (W) and that led to today’s well-recognized acronym SWOT (Chermack & Kasshanna, 2007).

Henry Mintzberg classified a preliminary form of SWOT as the main instrument of the Design School of Strategy and criticized the tool as an underlying cause to formalize the strategy making process (Hill & Westbrook, 1997). However, from the mid 60’s, Kenneth Andrews of Harvard Business School, in an attempt to combine competitive thinking with questions of strategy, created with his team the known SWOT analysis, supporting that the most suitable strategy is the one enabling harmonization between the different components of the matrix (Araştırmalar Dergici, 2017).

Following the tool’s timeline, in the 1980s it was used to support SME to create business and market plans, while in the 1990s the tool was also used in the regional development processes, NGOs and projects’ formulation. After the 1990s, the need to the development of such analysis was revealed by criticisms, with number of suggestions relating to the combination of SWOT’s usage with other analysis techniques such as Porter’s Five Forces Model, Cross Impact Analysis, etc. (Araştırmalar Dergici, 2017).
During the years, ‘SWOT has essentially remained unchanged even though many models and frameworks have emerged - these are all variations on the same theme’ (Chermack & Kasshanna, 2007). Despite its different forms and development, it remains a fundamental strategic framework, which contributes to explore new possibilities and initiate new strategies.

== The SWOT framework ==
The analysis of the future constitutes a process which intrigue individuals but also businesses and organizations. The implementation of SWOT analysis forms an alternative to evaluate results from present and future-oriented views (Züst & Troxler, 2006).

=== SWOT Analysis components ===

The acronym of the 4-box strategy development framework stands for Strengths, Weaknesses, Opportunities and Threats. It consists ‘a data gathering framework which records input factors’ (Sarsby, 2016). The most common template of a SWOT analysis is a 2x2 matrix where the rows distinguish in internal or external factors while the columns distinguish between helpful and harmful factors (depending on the context or objective of the analysis). As internal factors, strengths and weaknesses could be characterized as organizational, while the external factors (opportunities and threats) could be characterized as environmental. The SWOT matrix gives the opportunity to examine the interaction between the individual strengths and weaknesses of the system and the opportunities and threats of the future. Pairs of internal and external factors that ‘have the same cause most likely need similar or the same actions’ (Züst & Troxler, 2006).

==== ''Strengths'' ====
Strengths are internal and helpful factors identified in the analysis objective. In this category, organizations might include financial strengths, technological advantages, customer services and human resources (Sarsby, 2016). In general, the characteristics that render an organization more efficient and effective than competitors are included in its strengths (Araştırmalar Dergici, 2017). In relation to the other matrix components, strengths could potentially support an opportunity or contribute to overcome a threat (Sarsby, 2016).

==== ''Weaknesses'' ====
Weaknesses are internal and harmful factors identified in the analysis objective. In this category might be included financial struggles, dated technology, poor customer services and skill shortages related to human resources (Sarsby, 2016). Characteristics included in this category result in lack of competencies and effective performance. Consequently, the identification of weaknesses is highly important as crafting a strategy based on a weakness could lead the company to ‘die quickly’. In relation to the other matrix components, weaknesses complicate the process of taking advantage of an opportunity and are factors more vulnerable to threats (Sarsby, 2016).

==== ''Opportunities'' ====
Opportunities are external and helpful factors, lacking the possibility of control, but if handled right may result to desired results. Opportunities may arise from different resources such as trends, innovations etc. (Sarsby, 2016). Regarding the relation with the other matrix components ‘opportunities are conditions in the external environment that allow an organization to take advantage of organizational strengths, overcome organizational weaknesses or neutralize environmental threats’ (Harrison & St. John, 2004: 164).

==== ''Threats'' ====
Threats are external and harmful factors, over which there is no control (Sarsby, 2016). In relation to the other matrix components, they constitute a risk for opportunities or even organizational strengths.

=== Context of use ===
SWOT analysis is the commonest practical analytical tool for strategic planning, which is used by executives and consultants in different organizations as it is a simple and structured approach to evaluate a company’s strategic position and competitive advantage (Piercy & Giels, 1989). In the form of brainstorming sessions, the tool could be characterized as a dynamic process for decision-making under a specific context, as a Strength in one case could be a Weakness in another (Chermack & Kasshanna, 2007; Sarsby, 2016). The context and the purpose play a vital role in the SWOT analysis (Sarsby, 2016).

Despite a company’s size and general characteristics, there are different general guidelines proposed in the existing literature related to steps and rules to be followed to extract the maximum outcome during a SWOT analysis.

The general steps are described in an attempt to provide a general flow model of SWOT analysis (Chermack & Kasshanna, 2007):
1. Define clearly the main objective and purpose of the analysis: failure to correct identification may lead to resource waste
2. Explain procedure to different stakeholders: as long as the objective is approved by all stakeholders, there is a need to communicate the tool’s nature to set a common ground in the team
3. Brainstorm individually and list, in a 2 by 2 matrix, organization’s strengths, weaknesses, opportunities and threats: ask participants to work individually in a worksheet to record strengths, weaknesses, opportunities and threats the organization is facing currently. Help questions could be: What to we do well? What could we improve? What trends could you take advantage of? What is your competition doing?
4. Combine individuals worksheet in a common document: incorporate all responses in a common worksheet and distribute it to each participant
5. Trigger team’s communication through dialogue and debate related to each item’s classification: facilitate strategic dialogue to explore reasons behind individuals’ viewpoints and reach a decision
6. Develop and decide particular actions to forward the process

Besides the above-described procedure, in order to produce dynamic results through a SWOT analysis, a number of ‘rules’ to be followed, during each step, are presented below (Piercy & Giels, 1989):
• Focused SWOTs: thoroughly defined evaluated area to maximize productivity of the analysis
• Shared vision: idea polling, reveal team consensus, team communication and agreement
• Customer orientation: include in the evaluation of strengths and weaknesses, resources or capabilities recognized by the interested customer
• Environmental analysis: include in the identification of opportunities and threats relevant to the customer
• Structured strategy generation: after the completion of the matrix investigate matching, conversion and creative strategies

== Discussion ==
=== Advantages ===
Although an assessment of SWOT’s effectiveness is not an easy task, due to its numerous advantages, SWOT has been characterized as ‘the most widely used strategy tool in modern times’ (Chermack & Kasshanna, 2007; Sarsby, 2016). More specifically:
• It consists a simple technique as its implementation does not require an in-depth scientific knowledge (Piercy & Giels, 1989).
• It is a flexible model which can incorporate corporate or market information systems on request (Piercy & Giels, 1989).
• Easy method to structure complicated information such as qualitative and quantitative data, etc. (Piercy & Giels, 1989).
• The field of application covers many levels of an organization (from an individual to a corporate strategy) and different depths of analysis (Sarsby, 2016).
• Its visualization facilitates a holistic overview of the process and further communication of it with interested participants (Sarsby, 2016).
• It can be used as a guide to build on strengths, correct weaknesses, recognize and exploit new opportunities and protect against threats.

=== Disadvantages & Limitations ===
Despite its advantages based on its simplicity and the variety of collective information included, SWOT had also received a significant amount of criticism. A few of this include:
• Prompt to bias matrix completion due to individuals’ perceptions, beliefs and preferences (Sarsby, 2016).
• A pool of data collection without separating analysis elements and their evaluation, resulting to a long list (Sarsby, 2016; Hill & Westbrook, 1997).
• Tool usage has become ‘sloppy and unfocused’ (Piercy & Giels, 1989).
• Lack of prioritization or weight of identified of factors, giving the same importance to all of them (Hill & Westbrook, 1997).
• There is not a requirement to support statements with data (Hill & Westbrook, 1997). Consequently, it is also possible to list the same factor as a strength or weakness, depending on the viewpoint.
• As SWOT records facts of a specific timeframe, there is need for updates to maintain and develop the analysis.

=== Reflections ===
The following figure is an attempt to implement a SWOT analysis for the SWOT analysis tool, to reflect on the value of its usage. While classifying the factors in the four quadrants, strengths such as ‘visualization’ and weaknesses such as the difficulty of brainstorming whether a factor is a strength or weakness, became clearly apparent.
[[File:SWOT_for_the_SWOT.png‎|center|thumb|310px|Figure 1: SWOT for the SWOT (own figure based on the discusions above ) ]]

== References ==
<references/>
Araştırmalar Dergici, U.S. (2017). SWOT Analysis: A theoretical review, The Journal of International Social Research, 10 (51), pp. 994-1006. doi: 10.17719/jisr.2017.1832

Bryson, J.M. (2003). Strategic Planning and Management. In B. Guy Peters and John Pierre, Handbook of Public Administration, pp. 38- 47, London: SAGE Publications Ltd.

Chermack, T.H, Kasshanna, B.K. (2007). The Use and Misuse of SWOT Analysis and Implications for HRD Professionals, Human Resource Development International, 10 (4), pp. 383-399, doi: 10.1080/13678860701718760

David, F.R. (2003). Strategic Management-Concepts and Cases (9th Edition). USA: Pearson Education.

Dyer, J.H, Godfrey, P., Jensen, R., Bryce, D. (2017). Strategic Management: Concepts and Cases (2nd Edition). USA: Wiley

Helms, M.M. and Nixon, J. (2010). Exploring SWOT analysis – where are we now? A review of academic research from the last decade, Journal of Strategy and Management, 3 (3), pp. 215-251. https://doi.org/10.1108/17554251011064837

Hill, T., Westbrook, R. (1997). SWOT analysis: It's time for a product recall, Long Range Planning, 30 (1), pp. 46-52. doi: 10.1016/S0024-6301(96)00095-7

Madsen, D.Ø. (2016). SWOT Analysis: A Management Fashion Perspective. International Journal of Business Research, 16 (1), pp.39-56. doi: 10.18374/IJBR-16-1.3

Piercy, N., Giels, W. (1989). Making SWOT Analysis Work, Marketing Intelligence & Planning, 7 (5/6), pp. 5-7. doi: 10.1108/EUM0000000001042

Preble, J.F. (2003). Integrating the Crisis Management Perspective into the Strategic Management Process. Journal of Management Studies, 34(5), pp. 769-791. doi: 10.1111/1467-6486.00071

Project Management Institute, Inc.. (2017). Guide to the Project Management Body of Knowledge (PMBOK® Guide) (6th Edition), pp 414. Project Management Institute, Inc. (PMI). Retrieved from https://app.knovel.com/hotlink/toc/id:kpGPMBKP02/guide-project-management/guide-project-management

Sarsby, A. (2016). Swot Analysis : A Guide to Swot for Business Studies Students. United Kingdom: Spectaris Ltd.

Steiner, G.A. (1979). Strategic planning: What every manager should know. A step-by-step Guide. New York: Free Press.

Züst, R., Troxler, P. (2006). No More Muddling Through. Dordrecht: Springer.

[[Category:SWOT Analysis]] [[Category:Strategic management]]

SWOT Analysis Guide

2021-02-28T20:43:34Z

Dorothea Georgiadou: /* Reflections */

== Abstract ==
SWOT consists a strategic management tool, mainly used to identify risks during the data analysis process. The acronym of the 4-box strategy development framework stands for Strengths, Weaknesses, Opportunities and Threats and is possible to be applied to different industries, such as commerce, production, planning and voluntary organizations. The first emergence of the term in the literature is traced back to 1960 to investigate what went wrong with corporate planning, funded by the Fortune 500 companies while creating a new system to support management change. Over the past decade, SWOT research has focused on analyzing organizations for recommended strategic actions.

As with every tool or technique, SWOT has also its advantages and limitations. On the one hand, it is an interactional analysis technique that makes macro evaluations possible, in a road from the general perspective and solutions to the more detailed, uncovering opportunities. On the other hand, it has been criticized as prone to bias with questioned validity due to the quantity of different identified factors or failure to easily include dynamic and structural changes in a world based on competition.

The following article aims to investigate the process of conducting a SWOT analysis through a literature review, in order to present a short guide for its implementation. By analyzing the potentials of this tool’s usage, some practical implications are presented, mainly relevant to the combination of SWOT with other strategic planning tools. In addition, the author’s reflections are presented in an attempt to discuss the value and potential improvements in the use of the tool.

== Introduction ==
Strategic planning is a set of concepts, procedures and tools to be used in order for a company/organization to achieve its goals <ref name="Bryson"> Bryson, J.M. (2003). Strategic Planning and Management. In B. Guy Peters and John Pierre, Handbook of Public Administration, pp. 38- 47, London: SAGE Publications Ltd </ref> and is a function of all managers at all levels of an organization <ref name="Steiner"> Steiner, G.A. (1979). Strategic planning: What every manager should know. A step-by-step Guide. New York: Free Press </ref>. While being a process that deals with the futurity of current decisions, it is also a bulwark to support strategic management <ref name="Steiner"> Steiner, G.A. (1979). Strategic planning: What every manager should know. A step-by-step Guide. New York: Free Press </ref>.

Strategic management is a continuous process of an organization to formulate and evaluate decisions and plans to achieve a competitive advantage by being proactive (David, 2003; Dyer et al., 2017). The strategic management process is a sequential set of analyses and choices which includes the development of a vision and a mission, translated into a setting of long-term objectives and followed by a strategy crafting to achieve the targeted performance. Next steps are the strategy’s implementation and execution as well as the necessary performance evaluation to review the situation and initiate corrective adjustments (Preble, 2003).

Shedding light to the step of formulating a strategy, the implementation of a thorough external and internal analysis is involved. By conducting an external analysis, the organization is under a process of identifying potential threats and opportunities, focusing especially in the competition and customer analysis, respectively (Dyer et al., 2017). On the other hand, the internal analysis supports the organization to identify its strengths and weaknesses as well as its competitive (dis)advantages. The combined results are often summarized in a SWOT analysis, which consists a strategic management tool, mainly used to identify risks during the data analysis process (Dyer et al., 2017; Helms & Nixon, 2010; Project Management Institute, 2017).

Based on the direct connection of SWOT with strategic management processes, an important notation is that the implementation of the tool does not lead itself to the development of a strategy (Sarsby, 2016). An analysis interpretation as well as decision making, consist independent steps to be followed by the stakeholders.

== Historical development ==
The origin of SWOT analysis is difficult to be traced but the literature review places its emergence mostly back in 1950s and 1960s in the Harvard Business School environment, and mainly associated with Kenneth Andrews, Philip Selznick, Alfred DuPont Chandler and Harry Igor Ansoff (Madsen, 2016; Araştırmalar Dergici, 2017). Although SWOT is highly related to the Harvard Business School, it is worth mentioning that Stanford Research Institute conducted research funded by several Fortune 500 companies in an attempt to boost planning practices and avoid failures. The results were classified into four categories, with a resulting acronym ‘SOFT’ derived from Satisfactory (S), Opportunity (O), Fault (F) and Threat (T). In 1964, Urick and Orr decided to replace Fault (F) for Weakness (W) and that led to today’s well-recognized acronym SWOT (Chermack & Kasshanna, 2007).

Henry Mintzberg classified a preliminary form of SWOT as the main instrument of the Design School of Strategy and criticized the tool as an underlying cause to formalize the strategy making process (Hill & Westbrook, 1997). However, from the mid 60’s, Kenneth Andrews of Harvard Business School, in an attempt to combine competitive thinking with questions of strategy, created with his team the known SWOT analysis, supporting that the most suitable strategy is the one enabling harmonization between the different components of the matrix (Araştırmalar Dergici, 2017).

Following the tool’s timeline, in the 1980s it was used to support SME to create business and market plans, while in the 1990s the tool was also used in the regional development processes, NGOs and projects’ formulation. After the 1990s, the need to the development of such analysis was revealed by criticisms, with number of suggestions relating to the combination of SWOT’s usage with other analysis techniques such as Porter’s Five Forces Model, Cross Impact Analysis, etc. (Araştırmalar Dergici, 2017).
During the years, ‘SWOT has essentially remained unchanged even though many models and frameworks have emerged - these are all variations on the same theme’ (Chermack & Kasshanna, 2007). Despite its different forms and development, it remains a fundamental strategic framework, which contributes to explore new possibilities and initiate new strategies.

== The SWOT framework ==
The analysis of the future constitutes a process which intrigue individuals but also businesses and organizations. The implementation of SWOT analysis forms an alternative to evaluate results from present and future-oriented views (Züst & Troxler, 2006).

=== SWOT Analysis components ===

The acronym of the 4-box strategy development framework stands for Strengths, Weaknesses, Opportunities and Threats. It consists ‘a data gathering framework which records input factors’ (Sarsby, 2016). The most common template of a SWOT analysis is a 2x2 matrix where the rows distinguish in internal or external factors while the columns distinguish between helpful and harmful factors (depending on the context or objective of the analysis). As internal factors, strengths and weaknesses could be characterized as organizational, while the external factors (opportunities and threats) could be characterized as environmental. The SWOT matrix gives the opportunity to examine the interaction between the individual strengths and weaknesses of the system and the opportunities and threats of the future. Pairs of internal and external factors that ‘have the same cause most likely need similar or the same actions’ (Züst & Troxler, 2006).

==== ''Strengths'' ====
Strengths are internal and helpful factors identified in the analysis objective. In this category, organizations might include financial strengths, technological advantages, customer services and human resources (Sarsby, 2016). In general, the characteristics that render an organization more efficient and effective than competitors are included in its strengths (Araştırmalar Dergici, 2017). In relation to the other matrix components, strengths could potentially support an opportunity or contribute to overcome a threat (Sarsby, 2016).

==== ''Weaknesses'' ====
Weaknesses are internal and harmful factors identified in the analysis objective. In this category might be included financial struggles, dated technology, poor customer services and skill shortages related to human resources (Sarsby, 2016). Characteristics included in this category result in lack of competencies and effective performance. Consequently, the identification of weaknesses is highly important as crafting a strategy based on a weakness could lead the company to ‘die quickly’. In relation to the other matrix components, weaknesses complicate the process of taking advantage of an opportunity and are factors more vulnerable to threats (Sarsby, 2016).

==== ''Opportunities'' ====
Opportunities are external and helpful factors, lacking the possibility of control, but if handled right may result to desired results. Opportunities may arise from different resources such as trends, innovations etc. (Sarsby, 2016). Regarding the relation with the other matrix components ‘opportunities are conditions in the external environment that allow an organization to take advantage of organizational strengths, overcome organizational weaknesses or neutralize environmental threats’ (Harrison & St. John, 2004: 164).

==== ''Threats'' ====
Threats are external and harmful factors, over which there is no control (Sarsby, 2016). In relation to the other matrix components, they constitute a risk for opportunities or even organizational strengths.

=== Context of use ===
SWOT analysis is the commonest practical analytical tool for strategic planning, which is used by executives and consultants in different organizations as it is a simple and structured approach to evaluate a company’s strategic position and competitive advantage (Piercy & Giels, 1989). In the form of brainstorming sessions, the tool could be characterized as a dynamic process for decision-making under a specific context, as a Strength in one case could be a Weakness in another (Chermack & Kasshanna, 2007; Sarsby, 2016). The context and the purpose play a vital role in the SWOT analysis (Sarsby, 2016).

Despite a company’s size and general characteristics, there are different general guidelines proposed in the existing literature related to steps and rules to be followed to extract the maximum outcome during a SWOT analysis.

The general steps are described in an attempt to provide a general flow model of SWOT analysis (Chermack & Kasshanna, 2007):
1. Define clearly the main objective and purpose of the analysis: failure to correct identification may lead to resource waste
2. Explain procedure to different stakeholders: as long as the objective is approved by all stakeholders, there is a need to communicate the tool’s nature to set a common ground in the team
3. Brainstorm individually and list, in a 2 by 2 matrix, organization’s strengths, weaknesses, opportunities and threats: ask participants to work individually in a worksheet to record strengths, weaknesses, opportunities and threats the organization is facing currently. Help questions could be: What to we do well? What could we improve? What trends could you take advantage of? What is your competition doing?
4. Combine individuals worksheet in a common document: incorporate all responses in a common worksheet and distribute it to each participant
5. Trigger team’s communication through dialogue and debate related to each item’s classification: facilitate strategic dialogue to explore reasons behind individuals’ viewpoints and reach a decision
6. Develop and decide particular actions to forward the process

Besides the above-described procedure, in order to produce dynamic results through a SWOT analysis, a number of ‘rules’ to be followed, during each step, are presented below (Piercy & Giels, 1989):
• Focused SWOTs: thoroughly defined evaluated area to maximize productivity of the analysis
• Shared vision: idea polling, reveal team consensus, team communication and agreement
• Customer orientation: include in the evaluation of strengths and weaknesses, resources or capabilities recognized by the interested customer
• Environmental analysis: include in the identification of opportunities and threats relevant to the customer
• Structured strategy generation: after the completion of the matrix investigate matching, conversion and creative strategies

== Discussion ==
=== Advantages ===
Although an assessment of SWOT’s effectiveness is not an easy task, due to its numerous advantages, SWOT has been characterized as ‘the most widely used strategy tool in modern times’ (Chermack & Kasshanna, 2007; Sarsby, 2016). More specifically:
• It consists a simple technique as its implementation does not require an in-depth scientific knowledge (Piercy & Giels, 1989).
• It is a flexible model which can incorporate corporate or market information systems on request (Piercy & Giels, 1989).
• Easy method to structure complicated information such as qualitative and quantitative data, etc. (Piercy & Giels, 1989).
• The field of application covers many levels of an organization (from an individual to a corporate strategy) and different depths of analysis (Sarsby, 2016).
• Its visualization facilitates a holistic overview of the process and further communication of it with interested participants (Sarsby, 2016).
• It can be used as a guide to build on strengths, correct weaknesses, recognize and exploit new opportunities and protect against threats.

=== Disadvantages & Limitations ===
Despite its advantages based on its simplicity and the variety of collective information included, SWOT had also received a significant amount of criticism. A few of this include:
• Prompt to bias matrix completion due to individuals’ perceptions, beliefs and preferences (Sarsby, 2016).
• A pool of data collection without separating analysis elements and their evaluation, resulting to a long list (Sarsby, 2016; Hill & Westbrook, 1997).
• Tool usage has become ‘sloppy and unfocused’ (Piercy & Giels, 1989).
• Lack of prioritization or weight of identified of factors, giving the same importance to all of them (Hill & Westbrook, 1997).
• There is not a requirement to support statements with data (Hill & Westbrook, 1997). Consequently, it is also possible to list the same factor as a strength or weakness, depending on the viewpoint.
• As SWOT records facts of a specific timeframe, there is need for updates to maintain and develop the analysis.

=== Reflections ===
The following figure is an attempt to implement a SWOT analysis for the SWOT analysis tool, to reflect on the value of its usage. While classifying the factors in the four quadrants, strengths such as ‘visualization’ and weaknesses such as the difficulty of brainstorming whether a factor is a strength or weakness, became clearly apparent.
[[File:SWOTfortheSWOT.png‎|center|thumb|310px|Figure 1: (own figure, ) ]]

== References ==
<references/>
Araştırmalar Dergici, U.S. (2017). SWOT Analysis: A theoretical review, The Journal of International Social Research, 10 (51), pp. 994-1006. doi: 10.17719/jisr.2017.1832

Bryson, J.M. (2003). Strategic Planning and Management. In B. Guy Peters and John Pierre, Handbook of Public Administration, pp. 38- 47, London: SAGE Publications Ltd.

Chermack, T.H, Kasshanna, B.K. (2007). The Use and Misuse of SWOT Analysis and Implications for HRD Professionals, Human Resource Development International, 10 (4), pp. 383-399, doi: 10.1080/13678860701718760

David, F.R. (2003). Strategic Management-Concepts and Cases (9th Edition). USA: Pearson Education.

Dyer, J.H, Godfrey, P., Jensen, R., Bryce, D. (2017). Strategic Management: Concepts and Cases (2nd Edition). USA: Wiley

Helms, M.M. and Nixon, J. (2010). Exploring SWOT analysis – where are we now? A review of academic research from the last decade, Journal of Strategy and Management, 3 (3), pp. 215-251. https://doi.org/10.1108/17554251011064837

Hill, T., Westbrook, R. (1997). SWOT analysis: It's time for a product recall, Long Range Planning, 30 (1), pp. 46-52. doi: 10.1016/S0024-6301(96)00095-7

Madsen, D.Ø. (2016). SWOT Analysis: A Management Fashion Perspective. International Journal of Business Research, 16 (1), pp.39-56. doi: 10.18374/IJBR-16-1.3

Piercy, N., Giels, W. (1989). Making SWOT Analysis Work, Marketing Intelligence & Planning, 7 (5/6), pp. 5-7. doi: 10.1108/EUM0000000001042

Preble, J.F. (2003). Integrating the Crisis Management Perspective into the Strategic Management Process. Journal of Management Studies, 34(5), pp. 769-791. doi: 10.1111/1467-6486.00071

Project Management Institute, Inc.. (2017). Guide to the Project Management Body of Knowledge (PMBOK® Guide) (6th Edition), pp 414. Project Management Institute, Inc. (PMI). Retrieved from https://app.knovel.com/hotlink/toc/id:kpGPMBKP02/guide-project-management/guide-project-management

Sarsby, A. (2016). Swot Analysis : A Guide to Swot for Business Studies Students. United Kingdom: Spectaris Ltd.

Steiner, G.A. (1979). Strategic planning: What every manager should know. A step-by-step Guide. New York: Free Press.

Züst, R., Troxler, P. (2006). No More Muddling Through. Dordrecht: Springer.

[[Category:SWOT Analysis]] [[Category:Strategic management]]

SWOT Analysis Guide

2021-02-28T20:39:40Z

Dorothea Georgiadou: /* Introduction */

== Abstract ==
SWOT consists a strategic management tool, mainly used to identify risks during the data analysis process. The acronym of the 4-box strategy development framework stands for Strengths, Weaknesses, Opportunities and Threats and is possible to be applied to different industries, such as commerce, production, planning and voluntary organizations. The first emergence of the term in the literature is traced back to 1960 to investigate what went wrong with corporate planning, funded by the Fortune 500 companies while creating a new system to support management change. Over the past decade, SWOT research has focused on analyzing organizations for recommended strategic actions.

As with every tool or technique, SWOT has also its advantages and limitations. On the one hand, it is an interactional analysis technique that makes macro evaluations possible, in a road from the general perspective and solutions to the more detailed, uncovering opportunities. On the other hand, it has been criticized as prone to bias with questioned validity due to the quantity of different identified factors or failure to easily include dynamic and structural changes in a world based on competition.

The following article aims to investigate the process of conducting a SWOT analysis through a literature review, in order to present a short guide for its implementation. By analyzing the potentials of this tool’s usage, some practical implications are presented, mainly relevant to the combination of SWOT with other strategic planning tools. In addition, the author’s reflections are presented in an attempt to discuss the value and potential improvements in the use of the tool.

== Introduction ==
Strategic planning is a set of concepts, procedures and tools to be used in order for a company/organization to achieve its goals <ref name="Bryson"> Bryson, J.M. (2003). Strategic Planning and Management. In B. Guy Peters and John Pierre, Handbook of Public Administration, pp. 38- 47, London: SAGE Publications Ltd </ref> and is a function of all managers at all levels of an organization <ref name="Steiner"> Steiner, G.A. (1979). Strategic planning: What every manager should know. A step-by-step Guide. New York: Free Press </ref>. While being a process that deals with the futurity of current decisions, it is also a bulwark to support strategic management <ref name="Steiner"> Steiner, G.A. (1979). Strategic planning: What every manager should know. A step-by-step Guide. New York: Free Press </ref>.

Strategic management is a continuous process of an organization to formulate and evaluate decisions and plans to achieve a competitive advantage by being proactive (David, 2003; Dyer et al., 2017). The strategic management process is a sequential set of analyses and choices which includes the development of a vision and a mission, translated into a setting of long-term objectives and followed by a strategy crafting to achieve the targeted performance. Next steps are the strategy’s implementation and execution as well as the necessary performance evaluation to review the situation and initiate corrective adjustments (Preble, 2003).

Shedding light to the step of formulating a strategy, the implementation of a thorough external and internal analysis is involved. By conducting an external analysis, the organization is under a process of identifying potential threats and opportunities, focusing especially in the competition and customer analysis, respectively (Dyer et al., 2017). On the other hand, the internal analysis supports the organization to identify its strengths and weaknesses as well as its competitive (dis)advantages. The combined results are often summarized in a SWOT analysis, which consists a strategic management tool, mainly used to identify risks during the data analysis process (Dyer et al., 2017; Helms & Nixon, 2010; Project Management Institute, 2017).

Based on the direct connection of SWOT with strategic management processes, an important notation is that the implementation of the tool does not lead itself to the development of a strategy (Sarsby, 2016). An analysis interpretation as well as decision making, consist independent steps to be followed by the stakeholders.

== Historical development ==
The origin of SWOT analysis is difficult to be traced but the literature review places its emergence mostly back in 1950s and 1960s in the Harvard Business School environment, and mainly associated with Kenneth Andrews, Philip Selznick, Alfred DuPont Chandler and Harry Igor Ansoff (Madsen, 2016; Araştırmalar Dergici, 2017). Although SWOT is highly related to the Harvard Business School, it is worth mentioning that Stanford Research Institute conducted research funded by several Fortune 500 companies in an attempt to boost planning practices and avoid failures. The results were classified into four categories, with a resulting acronym ‘SOFT’ derived from Satisfactory (S), Opportunity (O), Fault (F) and Threat (T). In 1964, Urick and Orr decided to replace Fault (F) for Weakness (W) and that led to today’s well-recognized acronym SWOT (Chermack & Kasshanna, 2007).

Henry Mintzberg classified a preliminary form of SWOT as the main instrument of the Design School of Strategy and criticized the tool as an underlying cause to formalize the strategy making process (Hill & Westbrook, 1997). However, from the mid 60’s, Kenneth Andrews of Harvard Business School, in an attempt to combine competitive thinking with questions of strategy, created with his team the known SWOT analysis, supporting that the most suitable strategy is the one enabling harmonization between the different components of the matrix (Araştırmalar Dergici, 2017).

Following the tool’s timeline, in the 1980s it was used to support SME to create business and market plans, while in the 1990s the tool was also used in the regional development processes, NGOs and projects’ formulation. After the 1990s, the need to the development of such analysis was revealed by criticisms, with number of suggestions relating to the combination of SWOT’s usage with other analysis techniques such as Porter’s Five Forces Model, Cross Impact Analysis, etc. (Araştırmalar Dergici, 2017).
During the years, ‘SWOT has essentially remained unchanged even though many models and frameworks have emerged - these are all variations on the same theme’ (Chermack & Kasshanna, 2007). Despite its different forms and development, it remains a fundamental strategic framework, which contributes to explore new possibilities and initiate new strategies.

== The SWOT framework ==
The analysis of the future constitutes a process which intrigue individuals but also businesses and organizations. The implementation of SWOT analysis forms an alternative to evaluate results from present and future-oriented views (Züst & Troxler, 2006).

=== SWOT Analysis components ===

The acronym of the 4-box strategy development framework stands for Strengths, Weaknesses, Opportunities and Threats. It consists ‘a data gathering framework which records input factors’ (Sarsby, 2016). The most common template of a SWOT analysis is a 2x2 matrix where the rows distinguish in internal or external factors while the columns distinguish between helpful and harmful factors (depending on the context or objective of the analysis). As internal factors, strengths and weaknesses could be characterized as organizational, while the external factors (opportunities and threats) could be characterized as environmental. The SWOT matrix gives the opportunity to examine the interaction between the individual strengths and weaknesses of the system and the opportunities and threats of the future. Pairs of internal and external factors that ‘have the same cause most likely need similar or the same actions’ (Züst & Troxler, 2006).

==== ''Strengths'' ====
Strengths are internal and helpful factors identified in the analysis objective. In this category, organizations might include financial strengths, technological advantages, customer services and human resources (Sarsby, 2016). In general, the characteristics that render an organization more efficient and effective than competitors are included in its strengths (Araştırmalar Dergici, 2017). In relation to the other matrix components, strengths could potentially support an opportunity or contribute to overcome a threat (Sarsby, 2016).

==== ''Weaknesses'' ====
Weaknesses are internal and harmful factors identified in the analysis objective. In this category might be included financial struggles, dated technology, poor customer services and skill shortages related to human resources (Sarsby, 2016). Characteristics included in this category result in lack of competencies and effective performance. Consequently, the identification of weaknesses is highly important as crafting a strategy based on a weakness could lead the company to ‘die quickly’. In relation to the other matrix components, weaknesses complicate the process of taking advantage of an opportunity and are factors more vulnerable to threats (Sarsby, 2016).

==== ''Opportunities'' ====
Opportunities are external and helpful factors, lacking the possibility of control, but if handled right may result to desired results. Opportunities may arise from different resources such as trends, innovations etc. (Sarsby, 2016). Regarding the relation with the other matrix components ‘opportunities are conditions in the external environment that allow an organization to take advantage of organizational strengths, overcome organizational weaknesses or neutralize environmental threats’ (Harrison & St. John, 2004: 164).

==== ''Threats'' ====
Threats are external and harmful factors, over which there is no control (Sarsby, 2016). In relation to the other matrix components, they constitute a risk for opportunities or even organizational strengths.

=== Context of use ===
SWOT analysis is the commonest practical analytical tool for strategic planning, which is used by executives and consultants in different organizations as it is a simple and structured approach to evaluate a company’s strategic position and competitive advantage (Piercy & Giels, 1989). In the form of brainstorming sessions, the tool could be characterized as a dynamic process for decision-making under a specific context, as a Strength in one case could be a Weakness in another (Chermack & Kasshanna, 2007; Sarsby, 2016). The context and the purpose play a vital role in the SWOT analysis (Sarsby, 2016).

Despite a company’s size and general characteristics, there are different general guidelines proposed in the existing literature related to steps and rules to be followed to extract the maximum outcome during a SWOT analysis.

The general steps are described in an attempt to provide a general flow model of SWOT analysis (Chermack & Kasshanna, 2007):
1. Define clearly the main objective and purpose of the analysis: failure to correct identification may lead to resource waste
2. Explain procedure to different stakeholders: as long as the objective is approved by all stakeholders, there is a need to communicate the tool’s nature to set a common ground in the team
3. Brainstorm individually and list, in a 2 by 2 matrix, organization’s strengths, weaknesses, opportunities and threats: ask participants to work individually in a worksheet to record strengths, weaknesses, opportunities and threats the organization is facing currently. Help questions could be: What to we do well? What could we improve? What trends could you take advantage of? What is your competition doing?
4. Combine individuals worksheet in a common document: incorporate all responses in a common worksheet and distribute it to each participant
5. Trigger team’s communication through dialogue and debate related to each item’s classification: facilitate strategic dialogue to explore reasons behind individuals’ viewpoints and reach a decision
6. Develop and decide particular actions to forward the process

Besides the above-described procedure, in order to produce dynamic results through a SWOT analysis, a number of ‘rules’ to be followed, during each step, are presented below (Piercy & Giels, 1989):
• Focused SWOTs: thoroughly defined evaluated area to maximize productivity of the analysis
• Shared vision: idea polling, reveal team consensus, team communication and agreement
• Customer orientation: include in the evaluation of strengths and weaknesses, resources or capabilities recognized by the interested customer
• Environmental analysis: include in the identification of opportunities and threats relevant to the customer
• Structured strategy generation: after the completion of the matrix investigate matching, conversion and creative strategies

== Discussion ==
=== Advantages ===
Although an assessment of SWOT’s effectiveness is not an easy task, due to its numerous advantages, SWOT has been characterized as ‘the most widely used strategy tool in modern times’ (Chermack & Kasshanna, 2007; Sarsby, 2016). More specifically:
• It consists a simple technique as its implementation does not require an in-depth scientific knowledge (Piercy & Giels, 1989).
• It is a flexible model which can incorporate corporate or market information systems on request (Piercy & Giels, 1989).
• Easy method to structure complicated information such as qualitative and quantitative data, etc. (Piercy & Giels, 1989).
• The field of application covers many levels of an organization (from an individual to a corporate strategy) and different depths of analysis (Sarsby, 2016).
• Its visualization facilitates a holistic overview of the process and further communication of it with interested participants (Sarsby, 2016).
• It can be used as a guide to build on strengths, correct weaknesses, recognize and exploit new opportunities and protect against threats.

=== Disadvantages & Limitations ===
Despite its advantages based on its simplicity and the variety of collective information included, SWOT had also received a significant amount of criticism. A few of this include:
• Prompt to bias matrix completion due to individuals’ perceptions, beliefs and preferences (Sarsby, 2016).
• A pool of data collection without separating analysis elements and their evaluation, resulting to a long list (Sarsby, 2016; Hill & Westbrook, 1997).
• Tool usage has become ‘sloppy and unfocused’ (Piercy & Giels, 1989).
• Lack of prioritization or weight of identified of factors, giving the same importance to all of them (Hill & Westbrook, 1997).
• There is not a requirement to support statements with data (Hill & Westbrook, 1997). Consequently, it is also possible to list the same factor as a strength or weakness, depending on the viewpoint.
• As SWOT records facts of a specific timeframe, there is need for updates to maintain and develop the analysis.

=== Reflections ===
The following figure is an attempt to implement a SWOT analysis for the SWOT analysis tool, to reflect on the value of its usage. While classifying the factors in the four quadrants, strengths such as ‘visualization’ and weaknesses such as the difficulty of brainstorming whether a factor is a strength or weakness, became clearly apparent.

== References ==
<references/>
Araştırmalar Dergici, U.S. (2017). SWOT Analysis: A theoretical review, The Journal of International Social Research, 10 (51), pp. 994-1006. doi: 10.17719/jisr.2017.1832

Bryson, J.M. (2003). Strategic Planning and Management. In B. Guy Peters and John Pierre, Handbook of Public Administration, pp. 38- 47, London: SAGE Publications Ltd.

Chermack, T.H, Kasshanna, B.K. (2007). The Use and Misuse of SWOT Analysis and Implications for HRD Professionals, Human Resource Development International, 10 (4), pp. 383-399, doi: 10.1080/13678860701718760

David, F.R. (2003). Strategic Management-Concepts and Cases (9th Edition). USA: Pearson Education.

Dyer, J.H, Godfrey, P., Jensen, R., Bryce, D. (2017). Strategic Management: Concepts and Cases (2nd Edition). USA: Wiley

Helms, M.M. and Nixon, J. (2010). Exploring SWOT analysis – where are we now? A review of academic research from the last decade, Journal of Strategy and Management, 3 (3), pp. 215-251. https://doi.org/10.1108/17554251011064837

Hill, T., Westbrook, R. (1997). SWOT analysis: It's time for a product recall, Long Range Planning, 30 (1), pp. 46-52. doi: 10.1016/S0024-6301(96)00095-7

Madsen, D.Ø. (2016). SWOT Analysis: A Management Fashion Perspective. International Journal of Business Research, 16 (1), pp.39-56. doi: 10.18374/IJBR-16-1.3

Piercy, N., Giels, W. (1989). Making SWOT Analysis Work, Marketing Intelligence & Planning, 7 (5/6), pp. 5-7. doi: 10.1108/EUM0000000001042

Preble, J.F. (2003). Integrating the Crisis Management Perspective into the Strategic Management Process. Journal of Management Studies, 34(5), pp. 769-791. doi: 10.1111/1467-6486.00071

Project Management Institute, Inc.. (2017). Guide to the Project Management Body of Knowledge (PMBOK® Guide) (6th Edition), pp 414. Project Management Institute, Inc. (PMI). Retrieved from https://app.knovel.com/hotlink/toc/id:kpGPMBKP02/guide-project-management/guide-project-management

Sarsby, A. (2016). Swot Analysis : A Guide to Swot for Business Studies Students. United Kingdom: Spectaris Ltd.

Steiner, G.A. (1979). Strategic planning: What every manager should know. A step-by-step Guide. New York: Free Press.

Züst, R., Troxler, P. (2006). No More Muddling Through. Dordrecht: Springer.

[[Category:SWOT Analysis]] [[Category:Strategic management]]

SWOT Analysis Guide

2021-02-28T20:39:13Z

Dorothea Georgiadou: /* Introduction */

== Abstract ==
SWOT consists a strategic management tool, mainly used to identify risks during the data analysis process. The acronym of the 4-box strategy development framework stands for Strengths, Weaknesses, Opportunities and Threats and is possible to be applied to different industries, such as commerce, production, planning and voluntary organizations. The first emergence of the term in the literature is traced back to 1960 to investigate what went wrong with corporate planning, funded by the Fortune 500 companies while creating a new system to support management change. Over the past decade, SWOT research has focused on analyzing organizations for recommended strategic actions.

As with every tool or technique, SWOT has also its advantages and limitations. On the one hand, it is an interactional analysis technique that makes macro evaluations possible, in a road from the general perspective and solutions to the more detailed, uncovering opportunities. On the other hand, it has been criticized as prone to bias with questioned validity due to the quantity of different identified factors or failure to easily include dynamic and structural changes in a world based on competition.

The following article aims to investigate the process of conducting a SWOT analysis through a literature review, in order to present a short guide for its implementation. By analyzing the potentials of this tool’s usage, some practical implications are presented, mainly relevant to the combination of SWOT with other strategic planning tools. In addition, the author’s reflections are presented in an attempt to discuss the value and potential improvements in the use of the tool.

== Introduction ==
Strategic planning is a set of concepts, procedures and tools to be used in order for a company/organization to achieve its goals <ref name="Bryson"> Bryson, J.M. (2003). Strategic Planning and Management. In B. Guy Peters and John Pierre, Handbook of Public Administration, pp. 38- 47, London: SAGE Publications Ltd </ref> and is a function of all managers at all levels of an organization <ref name="Steiner"> Steiner, G.A. (1979). Strategic planning: What every manager should know. A step-by-step Guide. New York: Free Press </ref>. While being a process that deals with the futurity of current decisions, it is also a bulwark to support strategic management.

Strategic management is a continuous process of an organization to formulate and evaluate decisions and plans to achieve a competitive advantage by being proactive (David, 2003; Dyer et al., 2017). The strategic management process is a sequential set of analyses and choices which includes the development of a vision and a mission, translated into a setting of long-term objectives and followed by a strategy crafting to achieve the targeted performance. Next steps are the strategy’s implementation and execution as well as the necessary performance evaluation to review the situation and initiate corrective adjustments (Preble, 2003).

Shedding light to the step of formulating a strategy, the implementation of a thorough external and internal analysis is involved. By conducting an external analysis, the organization is under a process of identifying potential threats and opportunities, focusing especially in the competition and customer analysis, respectively (Dyer et al., 2017). On the other hand, the internal analysis supports the organization to identify its strengths and weaknesses as well as its competitive (dis)advantages. The combined results are often summarized in a SWOT analysis, which consists a strategic management tool, mainly used to identify risks during the data analysis process (Dyer et al., 2017; Helms & Nixon, 2010; Project Management Institute, 2017).

Based on the direct connection of SWOT with strategic management processes, an important notation is that the implementation of the tool does not lead itself to the development of a strategy (Sarsby, 2016). An analysis interpretation as well as decision making, consist independent steps to be followed by the stakeholders.

== Historical development ==
The origin of SWOT analysis is difficult to be traced but the literature review places its emergence mostly back in 1950s and 1960s in the Harvard Business School environment, and mainly associated with Kenneth Andrews, Philip Selznick, Alfred DuPont Chandler and Harry Igor Ansoff (Madsen, 2016; Araştırmalar Dergici, 2017). Although SWOT is highly related to the Harvard Business School, it is worth mentioning that Stanford Research Institute conducted research funded by several Fortune 500 companies in an attempt to boost planning practices and avoid failures. The results were classified into four categories, with a resulting acronym ‘SOFT’ derived from Satisfactory (S), Opportunity (O), Fault (F) and Threat (T). In 1964, Urick and Orr decided to replace Fault (F) for Weakness (W) and that led to today’s well-recognized acronym SWOT (Chermack & Kasshanna, 2007).

Henry Mintzberg classified a preliminary form of SWOT as the main instrument of the Design School of Strategy and criticized the tool as an underlying cause to formalize the strategy making process (Hill & Westbrook, 1997). However, from the mid 60’s, Kenneth Andrews of Harvard Business School, in an attempt to combine competitive thinking with questions of strategy, created with his team the known SWOT analysis, supporting that the most suitable strategy is the one enabling harmonization between the different components of the matrix (Araştırmalar Dergici, 2017).

Following the tool’s timeline, in the 1980s it was used to support SME to create business and market plans, while in the 1990s the tool was also used in the regional development processes, NGOs and projects’ formulation. After the 1990s, the need to the development of such analysis was revealed by criticisms, with number of suggestions relating to the combination of SWOT’s usage with other analysis techniques such as Porter’s Five Forces Model, Cross Impact Analysis, etc. (Araştırmalar Dergici, 2017).
During the years, ‘SWOT has essentially remained unchanged even though many models and frameworks have emerged - these are all variations on the same theme’ (Chermack & Kasshanna, 2007). Despite its different forms and development, it remains a fundamental strategic framework, which contributes to explore new possibilities and initiate new strategies.

== The SWOT framework ==
The analysis of the future constitutes a process which intrigue individuals but also businesses and organizations. The implementation of SWOT analysis forms an alternative to evaluate results from present and future-oriented views (Züst & Troxler, 2006).

=== SWOT Analysis components ===

The acronym of the 4-box strategy development framework stands for Strengths, Weaknesses, Opportunities and Threats. It consists ‘a data gathering framework which records input factors’ (Sarsby, 2016). The most common template of a SWOT analysis is a 2x2 matrix where the rows distinguish in internal or external factors while the columns distinguish between helpful and harmful factors (depending on the context or objective of the analysis). As internal factors, strengths and weaknesses could be characterized as organizational, while the external factors (opportunities and threats) could be characterized as environmental. The SWOT matrix gives the opportunity to examine the interaction between the individual strengths and weaknesses of the system and the opportunities and threats of the future. Pairs of internal and external factors that ‘have the same cause most likely need similar or the same actions’ (Züst & Troxler, 2006).

==== ''Strengths'' ====
Strengths are internal and helpful factors identified in the analysis objective. In this category, organizations might include financial strengths, technological advantages, customer services and human resources (Sarsby, 2016). In general, the characteristics that render an organization more efficient and effective than competitors are included in its strengths (Araştırmalar Dergici, 2017). In relation to the other matrix components, strengths could potentially support an opportunity or contribute to overcome a threat (Sarsby, 2016).

==== ''Weaknesses'' ====
Weaknesses are internal and harmful factors identified in the analysis objective. In this category might be included financial struggles, dated technology, poor customer services and skill shortages related to human resources (Sarsby, 2016). Characteristics included in this category result in lack of competencies and effective performance. Consequently, the identification of weaknesses is highly important as crafting a strategy based on a weakness could lead the company to ‘die quickly’. In relation to the other matrix components, weaknesses complicate the process of taking advantage of an opportunity and are factors more vulnerable to threats (Sarsby, 2016).

==== ''Opportunities'' ====
Opportunities are external and helpful factors, lacking the possibility of control, but if handled right may result to desired results. Opportunities may arise from different resources such as trends, innovations etc. (Sarsby, 2016). Regarding the relation with the other matrix components ‘opportunities are conditions in the external environment that allow an organization to take advantage of organizational strengths, overcome organizational weaknesses or neutralize environmental threats’ (Harrison & St. John, 2004: 164).

==== ''Threats'' ====
Threats are external and harmful factors, over which there is no control (Sarsby, 2016). In relation to the other matrix components, they constitute a risk for opportunities or even organizational strengths.

=== Context of use ===
SWOT analysis is the commonest practical analytical tool for strategic planning, which is used by executives and consultants in different organizations as it is a simple and structured approach to evaluate a company’s strategic position and competitive advantage (Piercy & Giels, 1989). In the form of brainstorming sessions, the tool could be characterized as a dynamic process for decision-making under a specific context, as a Strength in one case could be a Weakness in another (Chermack & Kasshanna, 2007; Sarsby, 2016). The context and the purpose play a vital role in the SWOT analysis (Sarsby, 2016).

Despite a company’s size and general characteristics, there are different general guidelines proposed in the existing literature related to steps and rules to be followed to extract the maximum outcome during a SWOT analysis.

The general steps are described in an attempt to provide a general flow model of SWOT analysis (Chermack & Kasshanna, 2007):
1. Define clearly the main objective and purpose of the analysis: failure to correct identification may lead to resource waste
2. Explain procedure to different stakeholders: as long as the objective is approved by all stakeholders, there is a need to communicate the tool’s nature to set a common ground in the team
3. Brainstorm individually and list, in a 2 by 2 matrix, organization’s strengths, weaknesses, opportunities and threats: ask participants to work individually in a worksheet to record strengths, weaknesses, opportunities and threats the organization is facing currently. Help questions could be: What to we do well? What could we improve? What trends could you take advantage of? What is your competition doing?
4. Combine individuals worksheet in a common document: incorporate all responses in a common worksheet and distribute it to each participant
5. Trigger team’s communication through dialogue and debate related to each item’s classification: facilitate strategic dialogue to explore reasons behind individuals’ viewpoints and reach a decision
6. Develop and decide particular actions to forward the process

Besides the above-described procedure, in order to produce dynamic results through a SWOT analysis, a number of ‘rules’ to be followed, during each step, are presented below (Piercy & Giels, 1989):
• Focused SWOTs: thoroughly defined evaluated area to maximize productivity of the analysis
• Shared vision: idea polling, reveal team consensus, team communication and agreement
• Customer orientation: include in the evaluation of strengths and weaknesses, resources or capabilities recognized by the interested customer
• Environmental analysis: include in the identification of opportunities and threats relevant to the customer
• Structured strategy generation: after the completion of the matrix investigate matching, conversion and creative strategies

== Discussion ==
=== Advantages ===
Although an assessment of SWOT’s effectiveness is not an easy task, due to its numerous advantages, SWOT has been characterized as ‘the most widely used strategy tool in modern times’ (Chermack & Kasshanna, 2007; Sarsby, 2016). More specifically:
• It consists a simple technique as its implementation does not require an in-depth scientific knowledge (Piercy & Giels, 1989).
• It is a flexible model which can incorporate corporate or market information systems on request (Piercy & Giels, 1989).
• Easy method to structure complicated information such as qualitative and quantitative data, etc. (Piercy & Giels, 1989).
• The field of application covers many levels of an organization (from an individual to a corporate strategy) and different depths of analysis (Sarsby, 2016).
• Its visualization facilitates a holistic overview of the process and further communication of it with interested participants (Sarsby, 2016).
• It can be used as a guide to build on strengths, correct weaknesses, recognize and exploit new opportunities and protect against threats.

=== Disadvantages & Limitations ===
Despite its advantages based on its simplicity and the variety of collective information included, SWOT had also received a significant amount of criticism. A few of this include:
• Prompt to bias matrix completion due to individuals’ perceptions, beliefs and preferences (Sarsby, 2016).
• A pool of data collection without separating analysis elements and their evaluation, resulting to a long list (Sarsby, 2016; Hill & Westbrook, 1997).
• Tool usage has become ‘sloppy and unfocused’ (Piercy & Giels, 1989).
• Lack of prioritization or weight of identified of factors, giving the same importance to all of them (Hill & Westbrook, 1997).
• There is not a requirement to support statements with data (Hill & Westbrook, 1997). Consequently, it is also possible to list the same factor as a strength or weakness, depending on the viewpoint.
• As SWOT records facts of a specific timeframe, there is need for updates to maintain and develop the analysis.

=== Reflections ===
The following figure is an attempt to implement a SWOT analysis for the SWOT analysis tool, to reflect on the value of its usage. While classifying the factors in the four quadrants, strengths such as ‘visualization’ and weaknesses such as the difficulty of brainstorming whether a factor is a strength or weakness, became clearly apparent.

== References ==
<references/>
Araştırmalar Dergici, U.S. (2017). SWOT Analysis: A theoretical review, The Journal of International Social Research, 10 (51), pp. 994-1006. doi: 10.17719/jisr.2017.1832

Bryson, J.M. (2003). Strategic Planning and Management. In B. Guy Peters and John Pierre, Handbook of Public Administration, pp. 38- 47, London: SAGE Publications Ltd.

Chermack, T.H, Kasshanna, B.K. (2007). The Use and Misuse of SWOT Analysis and Implications for HRD Professionals, Human Resource Development International, 10 (4), pp. 383-399, doi: 10.1080/13678860701718760

David, F.R. (2003). Strategic Management-Concepts and Cases (9th Edition). USA: Pearson Education.

Dyer, J.H, Godfrey, P., Jensen, R., Bryce, D. (2017). Strategic Management: Concepts and Cases (2nd Edition). USA: Wiley

Helms, M.M. and Nixon, J. (2010). Exploring SWOT analysis – where are we now? A review of academic research from the last decade, Journal of Strategy and Management, 3 (3), pp. 215-251. https://doi.org/10.1108/17554251011064837

Hill, T., Westbrook, R. (1997). SWOT analysis: It's time for a product recall, Long Range Planning, 30 (1), pp. 46-52. doi: 10.1016/S0024-6301(96)00095-7

Madsen, D.Ø. (2016). SWOT Analysis: A Management Fashion Perspective. International Journal of Business Research, 16 (1), pp.39-56. doi: 10.18374/IJBR-16-1.3

Piercy, N., Giels, W. (1989). Making SWOT Analysis Work, Marketing Intelligence & Planning, 7 (5/6), pp. 5-7. doi: 10.1108/EUM0000000001042

Preble, J.F. (2003). Integrating the Crisis Management Perspective into the Strategic Management Process. Journal of Management Studies, 34(5), pp. 769-791. doi: 10.1111/1467-6486.00071

Project Management Institute, Inc.. (2017). Guide to the Project Management Body of Knowledge (PMBOK® Guide) (6th Edition), pp 414. Project Management Institute, Inc. (PMI). Retrieved from https://app.knovel.com/hotlink/toc/id:kpGPMBKP02/guide-project-management/guide-project-management

Sarsby, A. (2016). Swot Analysis : A Guide to Swot for Business Studies Students. United Kingdom: Spectaris Ltd.

Steiner, G.A. (1979). Strategic planning: What every manager should know. A step-by-step Guide. New York: Free Press.

Züst, R., Troxler, P. (2006). No More Muddling Through. Dordrecht: Springer.

[[Category:SWOT Analysis]] [[Category:Strategic management]]

SWOT Analysis Guide

2021-02-28T20:38:00Z

Dorothea Georgiadou: /* Introduction */

== Abstract ==
SWOT consists a strategic management tool, mainly used to identify risks during the data analysis process. The acronym of the 4-box strategy development framework stands for Strengths, Weaknesses, Opportunities and Threats and is possible to be applied to different industries, such as commerce, production, planning and voluntary organizations. The first emergence of the term in the literature is traced back to 1960 to investigate what went wrong with corporate planning, funded by the Fortune 500 companies while creating a new system to support management change. Over the past decade, SWOT research has focused on analyzing organizations for recommended strategic actions.

As with every tool or technique, SWOT has also its advantages and limitations. On the one hand, it is an interactional analysis technique that makes macro evaluations possible, in a road from the general perspective and solutions to the more detailed, uncovering opportunities. On the other hand, it has been criticized as prone to bias with questioned validity due to the quantity of different identified factors or failure to easily include dynamic and structural changes in a world based on competition.

The following article aims to investigate the process of conducting a SWOT analysis through a literature review, in order to present a short guide for its implementation. By analyzing the potentials of this tool’s usage, some practical implications are presented, mainly relevant to the combination of SWOT with other strategic planning tools. In addition, the author’s reflections are presented in an attempt to discuss the value and potential improvements in the use of the tool.

== Introduction ==
Strategic planning is a set of concepts, procedures and tools to be used in order for a company/organization to achieve its goals <ref name="Bryson"> Bryson, J.M. (2003). Strategic Planning and Management. In B. Guy Peters and John Pierre, Handbook of Public Administration, pp. 38- 47, London: SAGE Publications Ltd </ref> and is a function of all managers at all levels of an organization <ref name="Steiner"> Steiner, G.A. (1979). Strategic planning: What every manager should know. A step-by-step Guide. New York: Free Press </ref>. While being a process that deals with the futurity of current decisions, it is also a bulwark to support strategic management <ref name="Steiner">.

Strategic management is a continuous process of an organization to formulate and evaluate decisions and plans to achieve a competitive advantage by being proactive (David, 2003; Dyer et al., 2017). The strategic management process is a sequential set of analyses and choices which includes the development of a vision and a mission, translated into a setting of long-term objectives and followed by a strategy crafting to achieve the targeted performance. Next steps are the strategy’s implementation and execution as well as the necessary performance evaluation to review the situation and initiate corrective adjustments (Preble, 2003).

Shedding light to the step of formulating a strategy, the implementation of a thorough external and internal analysis is involved. By conducting an external analysis, the organization is under a process of identifying potential threats and opportunities, focusing especially in the competition and customer analysis, respectively (Dyer et al., 2017). On the other hand, the internal analysis supports the organization to identify its strengths and weaknesses as well as its competitive (dis)advantages. The combined results are often summarized in a SWOT analysis, which consists a strategic management tool, mainly used to identify risks during the data analysis process (Dyer et al., 2017; Helms & Nixon, 2010; Project Management Institute, 2017).

Based on the direct connection of SWOT with strategic management processes, an important notation is that the implementation of the tool does not lead itself to the development of a strategy (Sarsby, 2016). An analysis interpretation as well as decision making, consist independent steps to be followed by the stakeholders.

== Historical development ==
The origin of SWOT analysis is difficult to be traced but the literature review places its emergence mostly back in 1950s and 1960s in the Harvard Business School environment, and mainly associated with Kenneth Andrews, Philip Selznick, Alfred DuPont Chandler and Harry Igor Ansoff (Madsen, 2016; Araştırmalar Dergici, 2017). Although SWOT is highly related to the Harvard Business School, it is worth mentioning that Stanford Research Institute conducted research funded by several Fortune 500 companies in an attempt to boost planning practices and avoid failures. The results were classified into four categories, with a resulting acronym ‘SOFT’ derived from Satisfactory (S), Opportunity (O), Fault (F) and Threat (T). In 1964, Urick and Orr decided to replace Fault (F) for Weakness (W) and that led to today’s well-recognized acronym SWOT (Chermack & Kasshanna, 2007).

Henry Mintzberg classified a preliminary form of SWOT as the main instrument of the Design School of Strategy and criticized the tool as an underlying cause to formalize the strategy making process (Hill & Westbrook, 1997). However, from the mid 60’s, Kenneth Andrews of Harvard Business School, in an attempt to combine competitive thinking with questions of strategy, created with his team the known SWOT analysis, supporting that the most suitable strategy is the one enabling harmonization between the different components of the matrix (Araştırmalar Dergici, 2017).

Following the tool’s timeline, in the 1980s it was used to support SME to create business and market plans, while in the 1990s the tool was also used in the regional development processes, NGOs and projects’ formulation. After the 1990s, the need to the development of such analysis was revealed by criticisms, with number of suggestions relating to the combination of SWOT’s usage with other analysis techniques such as Porter’s Five Forces Model, Cross Impact Analysis, etc. (Araştırmalar Dergici, 2017).
During the years, ‘SWOT has essentially remained unchanged even though many models and frameworks have emerged - these are all variations on the same theme’ (Chermack & Kasshanna, 2007). Despite its different forms and development, it remains a fundamental strategic framework, which contributes to explore new possibilities and initiate new strategies.

== The SWOT framework ==
The analysis of the future constitutes a process which intrigue individuals but also businesses and organizations. The implementation of SWOT analysis forms an alternative to evaluate results from present and future-oriented views (Züst & Troxler, 2006).

=== SWOT Analysis components ===

The acronym of the 4-box strategy development framework stands for Strengths, Weaknesses, Opportunities and Threats. It consists ‘a data gathering framework which records input factors’ (Sarsby, 2016). The most common template of a SWOT analysis is a 2x2 matrix where the rows distinguish in internal or external factors while the columns distinguish between helpful and harmful factors (depending on the context or objective of the analysis). As internal factors, strengths and weaknesses could be characterized as organizational, while the external factors (opportunities and threats) could be characterized as environmental. The SWOT matrix gives the opportunity to examine the interaction between the individual strengths and weaknesses of the system and the opportunities and threats of the future. Pairs of internal and external factors that ‘have the same cause most likely need similar or the same actions’ (Züst & Troxler, 2006).

==== ''Strengths'' ====
Strengths are internal and helpful factors identified in the analysis objective. In this category, organizations might include financial strengths, technological advantages, customer services and human resources (Sarsby, 2016). In general, the characteristics that render an organization more efficient and effective than competitors are included in its strengths (Araştırmalar Dergici, 2017). In relation to the other matrix components, strengths could potentially support an opportunity or contribute to overcome a threat (Sarsby, 2016).

==== ''Weaknesses'' ====
Weaknesses are internal and harmful factors identified in the analysis objective. In this category might be included financial struggles, dated technology, poor customer services and skill shortages related to human resources (Sarsby, 2016). Characteristics included in this category result in lack of competencies and effective performance. Consequently, the identification of weaknesses is highly important as crafting a strategy based on a weakness could lead the company to ‘die quickly’. In relation to the other matrix components, weaknesses complicate the process of taking advantage of an opportunity and are factors more vulnerable to threats (Sarsby, 2016).

==== ''Opportunities'' ====
Opportunities are external and helpful factors, lacking the possibility of control, but if handled right may result to desired results. Opportunities may arise from different resources such as trends, innovations etc. (Sarsby, 2016). Regarding the relation with the other matrix components ‘opportunities are conditions in the external environment that allow an organization to take advantage of organizational strengths, overcome organizational weaknesses or neutralize environmental threats’ (Harrison & St. John, 2004: 164).

==== ''Threats'' ====
Threats are external and harmful factors, over which there is no control (Sarsby, 2016). In relation to the other matrix components, they constitute a risk for opportunities or even organizational strengths.

=== Context of use ===
SWOT analysis is the commonest practical analytical tool for strategic planning, which is used by executives and consultants in different organizations as it is a simple and structured approach to evaluate a company’s strategic position and competitive advantage (Piercy & Giels, 1989). In the form of brainstorming sessions, the tool could be characterized as a dynamic process for decision-making under a specific context, as a Strength in one case could be a Weakness in another (Chermack & Kasshanna, 2007; Sarsby, 2016). The context and the purpose play a vital role in the SWOT analysis (Sarsby, 2016).

Despite a company’s size and general characteristics, there are different general guidelines proposed in the existing literature related to steps and rules to be followed to extract the maximum outcome during a SWOT analysis.

The general steps are described in an attempt to provide a general flow model of SWOT analysis (Chermack & Kasshanna, 2007):
1. Define clearly the main objective and purpose of the analysis: failure to correct identification may lead to resource waste
2. Explain procedure to different stakeholders: as long as the objective is approved by all stakeholders, there is a need to communicate the tool’s nature to set a common ground in the team
3. Brainstorm individually and list, in a 2 by 2 matrix, organization’s strengths, weaknesses, opportunities and threats: ask participants to work individually in a worksheet to record strengths, weaknesses, opportunities and threats the organization is facing currently. Help questions could be: What to we do well? What could we improve? What trends could you take advantage of? What is your competition doing?
4. Combine individuals worksheet in a common document: incorporate all responses in a common worksheet and distribute it to each participant
5. Trigger team’s communication through dialogue and debate related to each item’s classification: facilitate strategic dialogue to explore reasons behind individuals’ viewpoints and reach a decision
6. Develop and decide particular actions to forward the process

Besides the above-described procedure, in order to produce dynamic results through a SWOT analysis, a number of ‘rules’ to be followed, during each step, are presented below (Piercy & Giels, 1989):
• Focused SWOTs: thoroughly defined evaluated area to maximize productivity of the analysis
• Shared vision: idea polling, reveal team consensus, team communication and agreement
• Customer orientation: include in the evaluation of strengths and weaknesses, resources or capabilities recognized by the interested customer
• Environmental analysis: include in the identification of opportunities and threats relevant to the customer
• Structured strategy generation: after the completion of the matrix investigate matching, conversion and creative strategies

== Discussion ==
=== Advantages ===
Although an assessment of SWOT’s effectiveness is not an easy task, due to its numerous advantages, SWOT has been characterized as ‘the most widely used strategy tool in modern times’ (Chermack & Kasshanna, 2007; Sarsby, 2016). More specifically:
• It consists a simple technique as its implementation does not require an in-depth scientific knowledge (Piercy & Giels, 1989).
• It is a flexible model which can incorporate corporate or market information systems on request (Piercy & Giels, 1989).
• Easy method to structure complicated information such as qualitative and quantitative data, etc. (Piercy & Giels, 1989).
• The field of application covers many levels of an organization (from an individual to a corporate strategy) and different depths of analysis (Sarsby, 2016).
• Its visualization facilitates a holistic overview of the process and further communication of it with interested participants (Sarsby, 2016).
• It can be used as a guide to build on strengths, correct weaknesses, recognize and exploit new opportunities and protect against threats.

=== Disadvantages & Limitations ===
Despite its advantages based on its simplicity and the variety of collective information included, SWOT had also received a significant amount of criticism. A few of this include:
• Prompt to bias matrix completion due to individuals’ perceptions, beliefs and preferences (Sarsby, 2016).
• A pool of data collection without separating analysis elements and their evaluation, resulting to a long list (Sarsby, 2016; Hill & Westbrook, 1997).
• Tool usage has become ‘sloppy and unfocused’ (Piercy & Giels, 1989).
• Lack of prioritization or weight of identified of factors, giving the same importance to all of them (Hill & Westbrook, 1997).
• There is not a requirement to support statements with data (Hill & Westbrook, 1997). Consequently, it is also possible to list the same factor as a strength or weakness, depending on the viewpoint.
• As SWOT records facts of a specific timeframe, there is need for updates to maintain and develop the analysis.

=== Reflections ===
The following figure is an attempt to implement a SWOT analysis for the SWOT analysis tool, to reflect on the value of its usage. While classifying the factors in the four quadrants, strengths such as ‘visualization’ and weaknesses such as the difficulty of brainstorming whether a factor is a strength or weakness, became clearly apparent.

== References ==
<references/>
Araştırmalar Dergici, U.S. (2017). SWOT Analysis: A theoretical review, The Journal of International Social Research, 10 (51), pp. 994-1006. doi: 10.17719/jisr.2017.1832

Bryson, J.M. (2003). Strategic Planning and Management. In B. Guy Peters and John Pierre, Handbook of Public Administration, pp. 38- 47, London: SAGE Publications Ltd.

Chermack, T.H, Kasshanna, B.K. (2007). The Use and Misuse of SWOT Analysis and Implications for HRD Professionals, Human Resource Development International, 10 (4), pp. 383-399, doi: 10.1080/13678860701718760

David, F.R. (2003). Strategic Management-Concepts and Cases (9th Edition). USA: Pearson Education.

Dyer, J.H, Godfrey, P., Jensen, R., Bryce, D. (2017). Strategic Management: Concepts and Cases (2nd Edition). USA: Wiley

Helms, M.M. and Nixon, J. (2010). Exploring SWOT analysis – where are we now? A review of academic research from the last decade, Journal of Strategy and Management, 3 (3), pp. 215-251. https://doi.org/10.1108/17554251011064837

Hill, T., Westbrook, R. (1997). SWOT analysis: It's time for a product recall, Long Range Planning, 30 (1), pp. 46-52. doi: 10.1016/S0024-6301(96)00095-7

Madsen, D.Ø. (2016). SWOT Analysis: A Management Fashion Perspective. International Journal of Business Research, 16 (1), pp.39-56. doi: 10.18374/IJBR-16-1.3

Piercy, N., Giels, W. (1989). Making SWOT Analysis Work, Marketing Intelligence & Planning, 7 (5/6), pp. 5-7. doi: 10.1108/EUM0000000001042

Preble, J.F. (2003). Integrating the Crisis Management Perspective into the Strategic Management Process. Journal of Management Studies, 34(5), pp. 769-791. doi: 10.1111/1467-6486.00071

Project Management Institute, Inc.. (2017). Guide to the Project Management Body of Knowledge (PMBOK® Guide) (6th Edition), pp 414. Project Management Institute, Inc. (PMI). Retrieved from https://app.knovel.com/hotlink/toc/id:kpGPMBKP02/guide-project-management/guide-project-management

Sarsby, A. (2016). Swot Analysis : A Guide to Swot for Business Studies Students. United Kingdom: Spectaris Ltd.

Steiner, G.A. (1979). Strategic planning: What every manager should know. A step-by-step Guide. New York: Free Press.

Züst, R., Troxler, P. (2006). No More Muddling Through. Dordrecht: Springer.

[[Category:SWOT Analysis]] [[Category:Strategic management]]

SWOT Analysis Guide

2021-02-28T20:37:14Z

Dorothea Georgiadou: /* Introduction */

== Abstract ==
SWOT consists a strategic management tool, mainly used to identify risks during the data analysis process. The acronym of the 4-box strategy development framework stands for Strengths, Weaknesses, Opportunities and Threats and is possible to be applied to different industries, such as commerce, production, planning and voluntary organizations. The first emergence of the term in the literature is traced back to 1960 to investigate what went wrong with corporate planning, funded by the Fortune 500 companies while creating a new system to support management change. Over the past decade, SWOT research has focused on analyzing organizations for recommended strategic actions.

As with every tool or technique, SWOT has also its advantages and limitations. On the one hand, it is an interactional analysis technique that makes macro evaluations possible, in a road from the general perspective and solutions to the more detailed, uncovering opportunities. On the other hand, it has been criticized as prone to bias with questioned validity due to the quantity of different identified factors or failure to easily include dynamic and structural changes in a world based on competition.

The following article aims to investigate the process of conducting a SWOT analysis through a literature review, in order to present a short guide for its implementation. By analyzing the potentials of this tool’s usage, some practical implications are presented, mainly relevant to the combination of SWOT with other strategic planning tools. In addition, the author’s reflections are presented in an attempt to discuss the value and potential improvements in the use of the tool.

== Introduction ==
Strategic planning is a set of concepts, procedures and tools to be used in order for a company/organization to achieve its goals <ref name="Bryson"> Bryson, J.M. (2003). Strategic Planning and Management. In B. Guy Peters and John Pierre, Handbook of Public Administration, pp. 38- 47, London: SAGE Publications Ltd </ref> and is a function of all managers at all levels of an organization <ref name="Steiner"> Steiner, G.A. (1979). Strategic planning: What every manager should know. A step-by-step Guide. New York: Free Press </ref>. While being a process that deals with the futurity of current decisions, it is also a bulwark to support strategic management (Steiner, 1979).

Strategic management is a continuous process of an organization to formulate and evaluate decisions and plans to achieve a competitive advantage by being proactive (David, 2003; Dyer et al., 2017). The strategic management process is a sequential set of analyses and choices which includes the development of a vision and a mission, translated into a setting of long-term objectives and followed by a strategy crafting to achieve the targeted performance. Next steps are the strategy’s implementation and execution as well as the necessary performance evaluation to review the situation and initiate corrective adjustments (Preble, 2003).

Shedding light to the step of formulating a strategy, the implementation of a thorough external and internal analysis is involved. By conducting an external analysis, the organization is under a process of identifying potential threats and opportunities, focusing especially in the competition and customer analysis, respectively (Dyer et al., 2017). On the other hand, the internal analysis supports the organization to identify its strengths and weaknesses as well as its competitive (dis)advantages. The combined results are often summarized in a SWOT analysis, which consists a strategic management tool, mainly used to identify risks during the data analysis process (Dyer et al., 2017; Helms & Nixon, 2010; Project Management Institute, 2017).

Based on the direct connection of SWOT with strategic management processes, an important notation is that the implementation of the tool does not lead itself to the development of a strategy (Sarsby, 2016). An analysis interpretation as well as decision making, consist independent steps to be followed by the stakeholders.

== Historical development ==
The origin of SWOT analysis is difficult to be traced but the literature review places its emergence mostly back in 1950s and 1960s in the Harvard Business School environment, and mainly associated with Kenneth Andrews, Philip Selznick, Alfred DuPont Chandler and Harry Igor Ansoff (Madsen, 2016; Araştırmalar Dergici, 2017). Although SWOT is highly related to the Harvard Business School, it is worth mentioning that Stanford Research Institute conducted research funded by several Fortune 500 companies in an attempt to boost planning practices and avoid failures. The results were classified into four categories, with a resulting acronym ‘SOFT’ derived from Satisfactory (S), Opportunity (O), Fault (F) and Threat (T). In 1964, Urick and Orr decided to replace Fault (F) for Weakness (W) and that led to today’s well-recognized acronym SWOT (Chermack & Kasshanna, 2007).

Henry Mintzberg classified a preliminary form of SWOT as the main instrument of the Design School of Strategy and criticized the tool as an underlying cause to formalize the strategy making process (Hill & Westbrook, 1997). However, from the mid 60’s, Kenneth Andrews of Harvard Business School, in an attempt to combine competitive thinking with questions of strategy, created with his team the known SWOT analysis, supporting that the most suitable strategy is the one enabling harmonization between the different components of the matrix (Araştırmalar Dergici, 2017).

Following the tool’s timeline, in the 1980s it was used to support SME to create business and market plans, while in the 1990s the tool was also used in the regional development processes, NGOs and projects’ formulation. After the 1990s, the need to the development of such analysis was revealed by criticisms, with number of suggestions relating to the combination of SWOT’s usage with other analysis techniques such as Porter’s Five Forces Model, Cross Impact Analysis, etc. (Araştırmalar Dergici, 2017).
During the years, ‘SWOT has essentially remained unchanged even though many models and frameworks have emerged - these are all variations on the same theme’ (Chermack & Kasshanna, 2007). Despite its different forms and development, it remains a fundamental strategic framework, which contributes to explore new possibilities and initiate new strategies.

== The SWOT framework ==
The analysis of the future constitutes a process which intrigue individuals but also businesses and organizations. The implementation of SWOT analysis forms an alternative to evaluate results from present and future-oriented views (Züst & Troxler, 2006).

=== SWOT Analysis components ===

The acronym of the 4-box strategy development framework stands for Strengths, Weaknesses, Opportunities and Threats. It consists ‘a data gathering framework which records input factors’ (Sarsby, 2016). The most common template of a SWOT analysis is a 2x2 matrix where the rows distinguish in internal or external factors while the columns distinguish between helpful and harmful factors (depending on the context or objective of the analysis). As internal factors, strengths and weaknesses could be characterized as organizational, while the external factors (opportunities and threats) could be characterized as environmental. The SWOT matrix gives the opportunity to examine the interaction between the individual strengths and weaknesses of the system and the opportunities and threats of the future. Pairs of internal and external factors that ‘have the same cause most likely need similar or the same actions’ (Züst & Troxler, 2006).

==== ''Strengths'' ====
Strengths are internal and helpful factors identified in the analysis objective. In this category, organizations might include financial strengths, technological advantages, customer services and human resources (Sarsby, 2016). In general, the characteristics that render an organization more efficient and effective than competitors are included in its strengths (Araştırmalar Dergici, 2017). In relation to the other matrix components, strengths could potentially support an opportunity or contribute to overcome a threat (Sarsby, 2016).

==== ''Weaknesses'' ====
Weaknesses are internal and harmful factors identified in the analysis objective. In this category might be included financial struggles, dated technology, poor customer services and skill shortages related to human resources (Sarsby, 2016). Characteristics included in this category result in lack of competencies and effective performance. Consequently, the identification of weaknesses is highly important as crafting a strategy based on a weakness could lead the company to ‘die quickly’. In relation to the other matrix components, weaknesses complicate the process of taking advantage of an opportunity and are factors more vulnerable to threats (Sarsby, 2016).

==== ''Opportunities'' ====
Opportunities are external and helpful factors, lacking the possibility of control, but if handled right may result to desired results. Opportunities may arise from different resources such as trends, innovations etc. (Sarsby, 2016). Regarding the relation with the other matrix components ‘opportunities are conditions in the external environment that allow an organization to take advantage of organizational strengths, overcome organizational weaknesses or neutralize environmental threats’ (Harrison & St. John, 2004: 164).

==== ''Threats'' ====
Threats are external and harmful factors, over which there is no control (Sarsby, 2016). In relation to the other matrix components, they constitute a risk for opportunities or even organizational strengths.

=== Context of use ===
SWOT analysis is the commonest practical analytical tool for strategic planning, which is used by executives and consultants in different organizations as it is a simple and structured approach to evaluate a company’s strategic position and competitive advantage (Piercy & Giels, 1989). In the form of brainstorming sessions, the tool could be characterized as a dynamic process for decision-making under a specific context, as a Strength in one case could be a Weakness in another (Chermack & Kasshanna, 2007; Sarsby, 2016). The context and the purpose play a vital role in the SWOT analysis (Sarsby, 2016).

Despite a company’s size and general characteristics, there are different general guidelines proposed in the existing literature related to steps and rules to be followed to extract the maximum outcome during a SWOT analysis.

The general steps are described in an attempt to provide a general flow model of SWOT analysis (Chermack & Kasshanna, 2007):
1. Define clearly the main objective and purpose of the analysis: failure to correct identification may lead to resource waste
2. Explain procedure to different stakeholders: as long as the objective is approved by all stakeholders, there is a need to communicate the tool’s nature to set a common ground in the team
3. Brainstorm individually and list, in a 2 by 2 matrix, organization’s strengths, weaknesses, opportunities and threats: ask participants to work individually in a worksheet to record strengths, weaknesses, opportunities and threats the organization is facing currently. Help questions could be: What to we do well? What could we improve? What trends could you take advantage of? What is your competition doing?
4. Combine individuals worksheet in a common document: incorporate all responses in a common worksheet and distribute it to each participant
5. Trigger team’s communication through dialogue and debate related to each item’s classification: facilitate strategic dialogue to explore reasons behind individuals’ viewpoints and reach a decision
6. Develop and decide particular actions to forward the process

Besides the above-described procedure, in order to produce dynamic results through a SWOT analysis, a number of ‘rules’ to be followed, during each step, are presented below (Piercy & Giels, 1989):
• Focused SWOTs: thoroughly defined evaluated area to maximize productivity of the analysis
• Shared vision: idea polling, reveal team consensus, team communication and agreement
• Customer orientation: include in the evaluation of strengths and weaknesses, resources or capabilities recognized by the interested customer
• Environmental analysis: include in the identification of opportunities and threats relevant to the customer
• Structured strategy generation: after the completion of the matrix investigate matching, conversion and creative strategies

== Discussion ==
=== Advantages ===
Although an assessment of SWOT’s effectiveness is not an easy task, due to its numerous advantages, SWOT has been characterized as ‘the most widely used strategy tool in modern times’ (Chermack & Kasshanna, 2007; Sarsby, 2016). More specifically:
• It consists a simple technique as its implementation does not require an in-depth scientific knowledge (Piercy & Giels, 1989).
• It is a flexible model which can incorporate corporate or market information systems on request (Piercy & Giels, 1989).
• Easy method to structure complicated information such as qualitative and quantitative data, etc. (Piercy & Giels, 1989).
• The field of application covers many levels of an organization (from an individual to a corporate strategy) and different depths of analysis (Sarsby, 2016).
• Its visualization facilitates a holistic overview of the process and further communication of it with interested participants (Sarsby, 2016).
• It can be used as a guide to build on strengths, correct weaknesses, recognize and exploit new opportunities and protect against threats.

=== Disadvantages & Limitations ===
Despite its advantages based on its simplicity and the variety of collective information included, SWOT had also received a significant amount of criticism. A few of this include:
• Prompt to bias matrix completion due to individuals’ perceptions, beliefs and preferences (Sarsby, 2016).
• A pool of data collection without separating analysis elements and their evaluation, resulting to a long list (Sarsby, 2016; Hill & Westbrook, 1997).
• Tool usage has become ‘sloppy and unfocused’ (Piercy & Giels, 1989).
• Lack of prioritization or weight of identified of factors, giving the same importance to all of them (Hill & Westbrook, 1997).
• There is not a requirement to support statements with data (Hill & Westbrook, 1997). Consequently, it is also possible to list the same factor as a strength or weakness, depending on the viewpoint.
• As SWOT records facts of a specific timeframe, there is need for updates to maintain and develop the analysis.

=== Reflections ===
The following figure is an attempt to implement a SWOT analysis for the SWOT analysis tool, to reflect on the value of its usage. While classifying the factors in the four quadrants, strengths such as ‘visualization’ and weaknesses such as the difficulty of brainstorming whether a factor is a strength or weakness, became clearly apparent.

== References ==
<references/>
Araştırmalar Dergici, U.S. (2017). SWOT Analysis: A theoretical review, The Journal of International Social Research, 10 (51), pp. 994-1006. doi: 10.17719/jisr.2017.1832

Bryson, J.M. (2003). Strategic Planning and Management. In B. Guy Peters and John Pierre, Handbook of Public Administration, pp. 38- 47, London: SAGE Publications Ltd.

Chermack, T.H, Kasshanna, B.K. (2007). The Use and Misuse of SWOT Analysis and Implications for HRD Professionals, Human Resource Development International, 10 (4), pp. 383-399, doi: 10.1080/13678860701718760

David, F.R. (2003). Strategic Management-Concepts and Cases (9th Edition). USA: Pearson Education.

Dyer, J.H, Godfrey, P., Jensen, R., Bryce, D. (2017). Strategic Management: Concepts and Cases (2nd Edition). USA: Wiley

Helms, M.M. and Nixon, J. (2010). Exploring SWOT analysis – where are we now? A review of academic research from the last decade, Journal of Strategy and Management, 3 (3), pp. 215-251. https://doi.org/10.1108/17554251011064837

Hill, T., Westbrook, R. (1997). SWOT analysis: It's time for a product recall, Long Range Planning, 30 (1), pp. 46-52. doi: 10.1016/S0024-6301(96)00095-7

Madsen, D.Ø. (2016). SWOT Analysis: A Management Fashion Perspective. International Journal of Business Research, 16 (1), pp.39-56. doi: 10.18374/IJBR-16-1.3

Piercy, N., Giels, W. (1989). Making SWOT Analysis Work, Marketing Intelligence & Planning, 7 (5/6), pp. 5-7. doi: 10.1108/EUM0000000001042

Preble, J.F. (2003). Integrating the Crisis Management Perspective into the Strategic Management Process. Journal of Management Studies, 34(5), pp. 769-791. doi: 10.1111/1467-6486.00071

Project Management Institute, Inc.. (2017). Guide to the Project Management Body of Knowledge (PMBOK® Guide) (6th Edition), pp 414. Project Management Institute, Inc. (PMI). Retrieved from https://app.knovel.com/hotlink/toc/id:kpGPMBKP02/guide-project-management/guide-project-management

Sarsby, A. (2016). Swot Analysis : A Guide to Swot for Business Studies Students. United Kingdom: Spectaris Ltd.

Steiner, G.A. (1979). Strategic planning: What every manager should know. A step-by-step Guide. New York: Free Press.

Züst, R., Troxler, P. (2006). No More Muddling Through. Dordrecht: Springer.

[[Category:SWOT Analysis]] [[Category:Strategic management]]

SWOT Analysis Guide

2021-02-28T20:36:52Z

Dorothea Georgiadou: /* Introduction */

== Abstract ==
SWOT consists a strategic management tool, mainly used to identify risks during the data analysis process. The acronym of the 4-box strategy development framework stands for Strengths, Weaknesses, Opportunities and Threats and is possible to be applied to different industries, such as commerce, production, planning and voluntary organizations. The first emergence of the term in the literature is traced back to 1960 to investigate what went wrong with corporate planning, funded by the Fortune 500 companies while creating a new system to support management change. Over the past decade, SWOT research has focused on analyzing organizations for recommended strategic actions.

As with every tool or technique, SWOT has also its advantages and limitations. On the one hand, it is an interactional analysis technique that makes macro evaluations possible, in a road from the general perspective and solutions to the more detailed, uncovering opportunities. On the other hand, it has been criticized as prone to bias with questioned validity due to the quantity of different identified factors or failure to easily include dynamic and structural changes in a world based on competition.

The following article aims to investigate the process of conducting a SWOT analysis through a literature review, in order to present a short guide for its implementation. By analyzing the potentials of this tool’s usage, some practical implications are presented, mainly relevant to the combination of SWOT with other strategic planning tools. In addition, the author’s reflections are presented in an attempt to discuss the value and potential improvements in the use of the tool.

== Introduction ==
Strategic planning is a set of concepts, procedures and tools to be used in order for a company/organization to achieve its goals <ref name="Bryson"> Bryson, J.M. (2003). Strategic Planning and Management. In B. Guy Peters and John Pierre, Handbook of Public Administration, pp. 38- 47, London: SAGE Publications Ltd </ref> and is a function of all managers at all levels of an organization <ref name="Bryson"> Steiner, G.A. (1979). Strategic planning: What every manager should know. A step-by-step Guide. New York: Free Press </ref>. While being a process that deals with the futurity of current decisions, it is also a bulwark to support strategic management (Steiner, 1979).

Strategic management is a continuous process of an organization to formulate and evaluate decisions and plans to achieve a competitive advantage by being proactive (David, 2003; Dyer et al., 2017). The strategic management process is a sequential set of analyses and choices which includes the development of a vision and a mission, translated into a setting of long-term objectives and followed by a strategy crafting to achieve the targeted performance. Next steps are the strategy’s implementation and execution as well as the necessary performance evaluation to review the situation and initiate corrective adjustments (Preble, 2003).

Shedding light to the step of formulating a strategy, the implementation of a thorough external and internal analysis is involved. By conducting an external analysis, the organization is under a process of identifying potential threats and opportunities, focusing especially in the competition and customer analysis, respectively (Dyer et al., 2017). On the other hand, the internal analysis supports the organization to identify its strengths and weaknesses as well as its competitive (dis)advantages. The combined results are often summarized in a SWOT analysis, which consists a strategic management tool, mainly used to identify risks during the data analysis process (Dyer et al., 2017; Helms & Nixon, 2010; Project Management Institute, 2017).

Based on the direct connection of SWOT with strategic management processes, an important notation is that the implementation of the tool does not lead itself to the development of a strategy (Sarsby, 2016). An analysis interpretation as well as decision making, consist independent steps to be followed by the stakeholders.

== Historical development ==
The origin of SWOT analysis is difficult to be traced but the literature review places its emergence mostly back in 1950s and 1960s in the Harvard Business School environment, and mainly associated with Kenneth Andrews, Philip Selznick, Alfred DuPont Chandler and Harry Igor Ansoff (Madsen, 2016; Araştırmalar Dergici, 2017). Although SWOT is highly related to the Harvard Business School, it is worth mentioning that Stanford Research Institute conducted research funded by several Fortune 500 companies in an attempt to boost planning practices and avoid failures. The results were classified into four categories, with a resulting acronym ‘SOFT’ derived from Satisfactory (S), Opportunity (O), Fault (F) and Threat (T). In 1964, Urick and Orr decided to replace Fault (F) for Weakness (W) and that led to today’s well-recognized acronym SWOT (Chermack & Kasshanna, 2007).

Henry Mintzberg classified a preliminary form of SWOT as the main instrument of the Design School of Strategy and criticized the tool as an underlying cause to formalize the strategy making process (Hill & Westbrook, 1997). However, from the mid 60’s, Kenneth Andrews of Harvard Business School, in an attempt to combine competitive thinking with questions of strategy, created with his team the known SWOT analysis, supporting that the most suitable strategy is the one enabling harmonization between the different components of the matrix (Araştırmalar Dergici, 2017).

Following the tool’s timeline, in the 1980s it was used to support SME to create business and market plans, while in the 1990s the tool was also used in the regional development processes, NGOs and projects’ formulation. After the 1990s, the need to the development of such analysis was revealed by criticisms, with number of suggestions relating to the combination of SWOT’s usage with other analysis techniques such as Porter’s Five Forces Model, Cross Impact Analysis, etc. (Araştırmalar Dergici, 2017).
During the years, ‘SWOT has essentially remained unchanged even though many models and frameworks have emerged - these are all variations on the same theme’ (Chermack & Kasshanna, 2007). Despite its different forms and development, it remains a fundamental strategic framework, which contributes to explore new possibilities and initiate new strategies.

== The SWOT framework ==
The analysis of the future constitutes a process which intrigue individuals but also businesses and organizations. The implementation of SWOT analysis forms an alternative to evaluate results from present and future-oriented views (Züst & Troxler, 2006).

=== SWOT Analysis components ===

The acronym of the 4-box strategy development framework stands for Strengths, Weaknesses, Opportunities and Threats. It consists ‘a data gathering framework which records input factors’ (Sarsby, 2016). The most common template of a SWOT analysis is a 2x2 matrix where the rows distinguish in internal or external factors while the columns distinguish between helpful and harmful factors (depending on the context or objective of the analysis). As internal factors, strengths and weaknesses could be characterized as organizational, while the external factors (opportunities and threats) could be characterized as environmental. The SWOT matrix gives the opportunity to examine the interaction between the individual strengths and weaknesses of the system and the opportunities and threats of the future. Pairs of internal and external factors that ‘have the same cause most likely need similar or the same actions’ (Züst & Troxler, 2006).

==== ''Strengths'' ====
Strengths are internal and helpful factors identified in the analysis objective. In this category, organizations might include financial strengths, technological advantages, customer services and human resources (Sarsby, 2016). In general, the characteristics that render an organization more efficient and effective than competitors are included in its strengths (Araştırmalar Dergici, 2017). In relation to the other matrix components, strengths could potentially support an opportunity or contribute to overcome a threat (Sarsby, 2016).

==== ''Weaknesses'' ====
Weaknesses are internal and harmful factors identified in the analysis objective. In this category might be included financial struggles, dated technology, poor customer services and skill shortages related to human resources (Sarsby, 2016). Characteristics included in this category result in lack of competencies and effective performance. Consequently, the identification of weaknesses is highly important as crafting a strategy based on a weakness could lead the company to ‘die quickly’. In relation to the other matrix components, weaknesses complicate the process of taking advantage of an opportunity and are factors more vulnerable to threats (Sarsby, 2016).

==== ''Opportunities'' ====
Opportunities are external and helpful factors, lacking the possibility of control, but if handled right may result to desired results. Opportunities may arise from different resources such as trends, innovations etc. (Sarsby, 2016). Regarding the relation with the other matrix components ‘opportunities are conditions in the external environment that allow an organization to take advantage of organizational strengths, overcome organizational weaknesses or neutralize environmental threats’ (Harrison & St. John, 2004: 164).

==== ''Threats'' ====
Threats are external and harmful factors, over which there is no control (Sarsby, 2016). In relation to the other matrix components, they constitute a risk for opportunities or even organizational strengths.

=== Context of use ===
SWOT analysis is the commonest practical analytical tool for strategic planning, which is used by executives and consultants in different organizations as it is a simple and structured approach to evaluate a company’s strategic position and competitive advantage (Piercy & Giels, 1989). In the form of brainstorming sessions, the tool could be characterized as a dynamic process for decision-making under a specific context, as a Strength in one case could be a Weakness in another (Chermack & Kasshanna, 2007; Sarsby, 2016). The context and the purpose play a vital role in the SWOT analysis (Sarsby, 2016).

Despite a company’s size and general characteristics, there are different general guidelines proposed in the existing literature related to steps and rules to be followed to extract the maximum outcome during a SWOT analysis.

The general steps are described in an attempt to provide a general flow model of SWOT analysis (Chermack & Kasshanna, 2007):
1. Define clearly the main objective and purpose of the analysis: failure to correct identification may lead to resource waste
2. Explain procedure to different stakeholders: as long as the objective is approved by all stakeholders, there is a need to communicate the tool’s nature to set a common ground in the team
3. Brainstorm individually and list, in a 2 by 2 matrix, organization’s strengths, weaknesses, opportunities and threats: ask participants to work individually in a worksheet to record strengths, weaknesses, opportunities and threats the organization is facing currently. Help questions could be: What to we do well? What could we improve? What trends could you take advantage of? What is your competition doing?
4. Combine individuals worksheet in a common document: incorporate all responses in a common worksheet and distribute it to each participant
5. Trigger team’s communication through dialogue and debate related to each item’s classification: facilitate strategic dialogue to explore reasons behind individuals’ viewpoints and reach a decision
6. Develop and decide particular actions to forward the process

Besides the above-described procedure, in order to produce dynamic results through a SWOT analysis, a number of ‘rules’ to be followed, during each step, are presented below (Piercy & Giels, 1989):
• Focused SWOTs: thoroughly defined evaluated area to maximize productivity of the analysis
• Shared vision: idea polling, reveal team consensus, team communication and agreement
• Customer orientation: include in the evaluation of strengths and weaknesses, resources or capabilities recognized by the interested customer
• Environmental analysis: include in the identification of opportunities and threats relevant to the customer
• Structured strategy generation: after the completion of the matrix investigate matching, conversion and creative strategies

== Discussion ==
=== Advantages ===
Although an assessment of SWOT’s effectiveness is not an easy task, due to its numerous advantages, SWOT has been characterized as ‘the most widely used strategy tool in modern times’ (Chermack & Kasshanna, 2007; Sarsby, 2016). More specifically:
• It consists a simple technique as its implementation does not require an in-depth scientific knowledge (Piercy & Giels, 1989).
• It is a flexible model which can incorporate corporate or market information systems on request (Piercy & Giels, 1989).
• Easy method to structure complicated information such as qualitative and quantitative data, etc. (Piercy & Giels, 1989).
• The field of application covers many levels of an organization (from an individual to a corporate strategy) and different depths of analysis (Sarsby, 2016).
• Its visualization facilitates a holistic overview of the process and further communication of it with interested participants (Sarsby, 2016).
• It can be used as a guide to build on strengths, correct weaknesses, recognize and exploit new opportunities and protect against threats.

=== Disadvantages & Limitations ===
Despite its advantages based on its simplicity and the variety of collective information included, SWOT had also received a significant amount of criticism. A few of this include:
• Prompt to bias matrix completion due to individuals’ perceptions, beliefs and preferences (Sarsby, 2016).
• A pool of data collection without separating analysis elements and their evaluation, resulting to a long list (Sarsby, 2016; Hill & Westbrook, 1997).
• Tool usage has become ‘sloppy and unfocused’ (Piercy & Giels, 1989).
• Lack of prioritization or weight of identified of factors, giving the same importance to all of them (Hill & Westbrook, 1997).
• There is not a requirement to support statements with data (Hill & Westbrook, 1997). Consequently, it is also possible to list the same factor as a strength or weakness, depending on the viewpoint.
• As SWOT records facts of a specific timeframe, there is need for updates to maintain and develop the analysis.

=== Reflections ===
The following figure is an attempt to implement a SWOT analysis for the SWOT analysis tool, to reflect on the value of its usage. While classifying the factors in the four quadrants, strengths such as ‘visualization’ and weaknesses such as the difficulty of brainstorming whether a factor is a strength or weakness, became clearly apparent.

== References ==
<references/>
Araştırmalar Dergici, U.S. (2017). SWOT Analysis: A theoretical review, The Journal of International Social Research, 10 (51), pp. 994-1006. doi: 10.17719/jisr.2017.1832

Bryson, J.M. (2003). Strategic Planning and Management. In B. Guy Peters and John Pierre, Handbook of Public Administration, pp. 38- 47, London: SAGE Publications Ltd.

Chermack, T.H, Kasshanna, B.K. (2007). The Use and Misuse of SWOT Analysis and Implications for HRD Professionals, Human Resource Development International, 10 (4), pp. 383-399, doi: 10.1080/13678860701718760

David, F.R. (2003). Strategic Management-Concepts and Cases (9th Edition). USA: Pearson Education.

Dyer, J.H, Godfrey, P., Jensen, R., Bryce, D. (2017). Strategic Management: Concepts and Cases (2nd Edition). USA: Wiley

Helms, M.M. and Nixon, J. (2010). Exploring SWOT analysis – where are we now? A review of academic research from the last decade, Journal of Strategy and Management, 3 (3), pp. 215-251. https://doi.org/10.1108/17554251011064837

Hill, T., Westbrook, R. (1997). SWOT analysis: It's time for a product recall, Long Range Planning, 30 (1), pp. 46-52. doi: 10.1016/S0024-6301(96)00095-7

Madsen, D.Ø. (2016). SWOT Analysis: A Management Fashion Perspective. International Journal of Business Research, 16 (1), pp.39-56. doi: 10.18374/IJBR-16-1.3

Piercy, N., Giels, W. (1989). Making SWOT Analysis Work, Marketing Intelligence & Planning, 7 (5/6), pp. 5-7. doi: 10.1108/EUM0000000001042

Preble, J.F. (2003). Integrating the Crisis Management Perspective into the Strategic Management Process. Journal of Management Studies, 34(5), pp. 769-791. doi: 10.1111/1467-6486.00071

Project Management Institute, Inc.. (2017). Guide to the Project Management Body of Knowledge (PMBOK® Guide) (6th Edition), pp 414. Project Management Institute, Inc. (PMI). Retrieved from https://app.knovel.com/hotlink/toc/id:kpGPMBKP02/guide-project-management/guide-project-management

Sarsby, A. (2016). Swot Analysis : A Guide to Swot for Business Studies Students. United Kingdom: Spectaris Ltd.

Steiner, G.A. (1979). Strategic planning: What every manager should know. A step-by-step Guide. New York: Free Press.

Züst, R., Troxler, P. (2006). No More Muddling Through. Dordrecht: Springer.

[[Category:SWOT Analysis]] [[Category:Strategic management]]

SWOT Analysis Guide

2021-02-28T20:31:49Z

Dorothea Georgiadou: /* Introduction */

== Abstract ==
SWOT consists a strategic management tool, mainly used to identify risks during the data analysis process. The acronym of the 4-box strategy development framework stands for Strengths, Weaknesses, Opportunities and Threats and is possible to be applied to different industries, such as commerce, production, planning and voluntary organizations. The first emergence of the term in the literature is traced back to 1960 to investigate what went wrong with corporate planning, funded by the Fortune 500 companies while creating a new system to support management change. Over the past decade, SWOT research has focused on analyzing organizations for recommended strategic actions.

As with every tool or technique, SWOT has also its advantages and limitations. On the one hand, it is an interactional analysis technique that makes macro evaluations possible, in a road from the general perspective and solutions to the more detailed, uncovering opportunities. On the other hand, it has been criticized as prone to bias with questioned validity due to the quantity of different identified factors or failure to easily include dynamic and structural changes in a world based on competition.

The following article aims to investigate the process of conducting a SWOT analysis through a literature review, in order to present a short guide for its implementation. By analyzing the potentials of this tool’s usage, some practical implications are presented, mainly relevant to the combination of SWOT with other strategic planning tools. In addition, the author’s reflections are presented in an attempt to discuss the value and potential improvements in the use of the tool.

== Introduction ==
Strategic planning is a set of concepts, procedures and tools to be used in order for a company/organization to achieve its goals <ref name="Bryson"> Bryson, J.M. (2003). Strategic Planning and Management. In B. Guy Peters and John Pierre, Handbook of Public Administration, pp. 38- 47, London: SAGE Publications Ltd </ref> and is a function of all managers at all levels of an organization (Steiner, 1979). While being a process that deals with the futurity of current decisions, it is also a bulwark to support strategic management (Steiner, 1979).

Strategic management is a continuous process of an organization to formulate and evaluate decisions and plans to achieve a competitive advantage by being proactive (David, 2003; Dyer et al., 2017). The strategic management process is a sequential set of analyses and choices which includes the development of a vision and a mission, translated into a setting of long-term objectives and followed by a strategy crafting to achieve the targeted performance. Next steps are the strategy’s implementation and execution as well as the necessary performance evaluation to review the situation and initiate corrective adjustments (Preble, 2003).

Shedding light to the step of formulating a strategy, the implementation of a thorough external and internal analysis is involved. By conducting an external analysis, the organization is under a process of identifying potential threats and opportunities, focusing especially in the competition and customer analysis, respectively (Dyer et al., 2017). On the other hand, the internal analysis supports the organization to identify its strengths and weaknesses as well as its competitive (dis)advantages. The combined results are often summarized in a SWOT analysis, which consists a strategic management tool, mainly used to identify risks during the data analysis process (Dyer et al., 2017; Helms & Nixon, 2010; Project Management Institute, 2017).

Based on the direct connection of SWOT with strategic management processes, an important notation is that the implementation of the tool does not lead itself to the development of a strategy (Sarsby, 2016). An analysis interpretation as well as decision making, consist independent steps to be followed by the stakeholders.

== Historical development ==
The origin of SWOT analysis is difficult to be traced but the literature review places its emergence mostly back in 1950s and 1960s in the Harvard Business School environment, and mainly associated with Kenneth Andrews, Philip Selznick, Alfred DuPont Chandler and Harry Igor Ansoff (Madsen, 2016; Araştırmalar Dergici, 2017). Although SWOT is highly related to the Harvard Business School, it is worth mentioning that Stanford Research Institute conducted research funded by several Fortune 500 companies in an attempt to boost planning practices and avoid failures. The results were classified into four categories, with a resulting acronym ‘SOFT’ derived from Satisfactory (S), Opportunity (O), Fault (F) and Threat (T). In 1964, Urick and Orr decided to replace Fault (F) for Weakness (W) and that led to today’s well-recognized acronym SWOT (Chermack & Kasshanna, 2007).

Henry Mintzberg classified a preliminary form of SWOT as the main instrument of the Design School of Strategy and criticized the tool as an underlying cause to formalize the strategy making process (Hill & Westbrook, 1997). However, from the mid 60’s, Kenneth Andrews of Harvard Business School, in an attempt to combine competitive thinking with questions of strategy, created with his team the known SWOT analysis, supporting that the most suitable strategy is the one enabling harmonization between the different components of the matrix (Araştırmalar Dergici, 2017).

Following the tool’s timeline, in the 1980s it was used to support SME to create business and market plans, while in the 1990s the tool was also used in the regional development processes, NGOs and projects’ formulation. After the 1990s, the need to the development of such analysis was revealed by criticisms, with number of suggestions relating to the combination of SWOT’s usage with other analysis techniques such as Porter’s Five Forces Model, Cross Impact Analysis, etc. (Araştırmalar Dergici, 2017).
During the years, ‘SWOT has essentially remained unchanged even though many models and frameworks have emerged - these are all variations on the same theme’ (Chermack & Kasshanna, 2007). Despite its different forms and development, it remains a fundamental strategic framework, which contributes to explore new possibilities and initiate new strategies.

== The SWOT framework ==
The analysis of the future constitutes a process which intrigue individuals but also businesses and organizations. The implementation of SWOT analysis forms an alternative to evaluate results from present and future-oriented views (Züst & Troxler, 2006).

=== SWOT Analysis components ===

The acronym of the 4-box strategy development framework stands for Strengths, Weaknesses, Opportunities and Threats. It consists ‘a data gathering framework which records input factors’ (Sarsby, 2016). The most common template of a SWOT analysis is a 2x2 matrix where the rows distinguish in internal or external factors while the columns distinguish between helpful and harmful factors (depending on the context or objective of the analysis). As internal factors, strengths and weaknesses could be characterized as organizational, while the external factors (opportunities and threats) could be characterized as environmental. The SWOT matrix gives the opportunity to examine the interaction between the individual strengths and weaknesses of the system and the opportunities and threats of the future. Pairs of internal and external factors that ‘have the same cause most likely need similar or the same actions’ (Züst & Troxler, 2006).

==== ''Strengths'' ====
Strengths are internal and helpful factors identified in the analysis objective. In this category, organizations might include financial strengths, technological advantages, customer services and human resources (Sarsby, 2016). In general, the characteristics that render an organization more efficient and effective than competitors are included in its strengths (Araştırmalar Dergici, 2017). In relation to the other matrix components, strengths could potentially support an opportunity or contribute to overcome a threat (Sarsby, 2016).

==== ''Weaknesses'' ====
Weaknesses are internal and harmful factors identified in the analysis objective. In this category might be included financial struggles, dated technology, poor customer services and skill shortages related to human resources (Sarsby, 2016). Characteristics included in this category result in lack of competencies and effective performance. Consequently, the identification of weaknesses is highly important as crafting a strategy based on a weakness could lead the company to ‘die quickly’. In relation to the other matrix components, weaknesses complicate the process of taking advantage of an opportunity and are factors more vulnerable to threats (Sarsby, 2016).

==== ''Opportunities'' ====
Opportunities are external and helpful factors, lacking the possibility of control, but if handled right may result to desired results. Opportunities may arise from different resources such as trends, innovations etc. (Sarsby, 2016). Regarding the relation with the other matrix components ‘opportunities are conditions in the external environment that allow an organization to take advantage of organizational strengths, overcome organizational weaknesses or neutralize environmental threats’ (Harrison & St. John, 2004: 164).

==== ''Threats'' ====
Threats are external and harmful factors, over which there is no control (Sarsby, 2016). In relation to the other matrix components, they constitute a risk for opportunities or even organizational strengths.

=== Context of use ===
SWOT analysis is the commonest practical analytical tool for strategic planning, which is used by executives and consultants in different organizations as it is a simple and structured approach to evaluate a company’s strategic position and competitive advantage (Piercy & Giels, 1989). In the form of brainstorming sessions, the tool could be characterized as a dynamic process for decision-making under a specific context, as a Strength in one case could be a Weakness in another (Chermack & Kasshanna, 2007; Sarsby, 2016). The context and the purpose play a vital role in the SWOT analysis (Sarsby, 2016).

Despite a company’s size and general characteristics, there are different general guidelines proposed in the existing literature related to steps and rules to be followed to extract the maximum outcome during a SWOT analysis.

The general steps are described in an attempt to provide a general flow model of SWOT analysis (Chermack & Kasshanna, 2007):
1. Define clearly the main objective and purpose of the analysis: failure to correct identification may lead to resource waste
2. Explain procedure to different stakeholders: as long as the objective is approved by all stakeholders, there is a need to communicate the tool’s nature to set a common ground in the team
3. Brainstorm individually and list, in a 2 by 2 matrix, organization’s strengths, weaknesses, opportunities and threats: ask participants to work individually in a worksheet to record strengths, weaknesses, opportunities and threats the organization is facing currently. Help questions could be: What to we do well? What could we improve? What trends could you take advantage of? What is your competition doing?
4. Combine individuals worksheet in a common document: incorporate all responses in a common worksheet and distribute it to each participant
5. Trigger team’s communication through dialogue and debate related to each item’s classification: facilitate strategic dialogue to explore reasons behind individuals’ viewpoints and reach a decision
6. Develop and decide particular actions to forward the process

Besides the above-described procedure, in order to produce dynamic results through a SWOT analysis, a number of ‘rules’ to be followed, during each step, are presented below (Piercy & Giels, 1989):
• Focused SWOTs: thoroughly defined evaluated area to maximize productivity of the analysis
• Shared vision: idea polling, reveal team consensus, team communication and agreement
• Customer orientation: include in the evaluation of strengths and weaknesses, resources or capabilities recognized by the interested customer
• Environmental analysis: include in the identification of opportunities and threats relevant to the customer
• Structured strategy generation: after the completion of the matrix investigate matching, conversion and creative strategies

== Discussion ==
=== Advantages ===
Although an assessment of SWOT’s effectiveness is not an easy task, due to its numerous advantages, SWOT has been characterized as ‘the most widely used strategy tool in modern times’ (Chermack & Kasshanna, 2007; Sarsby, 2016). More specifically:
• It consists a simple technique as its implementation does not require an in-depth scientific knowledge (Piercy & Giels, 1989).
• It is a flexible model which can incorporate corporate or market information systems on request (Piercy & Giels, 1989).
• Easy method to structure complicated information such as qualitative and quantitative data, etc. (Piercy & Giels, 1989).
• The field of application covers many levels of an organization (from an individual to a corporate strategy) and different depths of analysis (Sarsby, 2016).
• Its visualization facilitates a holistic overview of the process and further communication of it with interested participants (Sarsby, 2016).
• It can be used as a guide to build on strengths, correct weaknesses, recognize and exploit new opportunities and protect against threats.

=== Disadvantages & Limitations ===
Despite its advantages based on its simplicity and the variety of collective information included, SWOT had also received a significant amount of criticism. A few of this include:
• Prompt to bias matrix completion due to individuals’ perceptions, beliefs and preferences (Sarsby, 2016).
• A pool of data collection without separating analysis elements and their evaluation, resulting to a long list (Sarsby, 2016; Hill & Westbrook, 1997).
• Tool usage has become ‘sloppy and unfocused’ (Piercy & Giels, 1989).
• Lack of prioritization or weight of identified of factors, giving the same importance to all of them (Hill & Westbrook, 1997).
• There is not a requirement to support statements with data (Hill & Westbrook, 1997). Consequently, it is also possible to list the same factor as a strength or weakness, depending on the viewpoint.
• As SWOT records facts of a specific timeframe, there is need for updates to maintain and develop the analysis.

=== Reflections ===
The following figure is an attempt to implement a SWOT analysis for the SWOT analysis tool, to reflect on the value of its usage. While classifying the factors in the four quadrants, strengths such as ‘visualization’ and weaknesses such as the difficulty of brainstorming whether a factor is a strength or weakness, became clearly apparent.

== References ==
<references/>
Araştırmalar Dergici, U.S. (2017). SWOT Analysis: A theoretical review, The Journal of International Social Research, 10 (51), pp. 994-1006. doi: 10.17719/jisr.2017.1832

Bryson, J.M. (2003). Strategic Planning and Management. In B. Guy Peters and John Pierre, Handbook of Public Administration, pp. 38- 47, London: SAGE Publications Ltd.

Chermack, T.H, Kasshanna, B.K. (2007). The Use and Misuse of SWOT Analysis and Implications for HRD Professionals, Human Resource Development International, 10 (4), pp. 383-399, doi: 10.1080/13678860701718760

David, F.R. (2003). Strategic Management-Concepts and Cases (9th Edition). USA: Pearson Education.

Dyer, J.H, Godfrey, P., Jensen, R., Bryce, D. (2017). Strategic Management: Concepts and Cases (2nd Edition). USA: Wiley

Helms, M.M. and Nixon, J. (2010). Exploring SWOT analysis – where are we now? A review of academic research from the last decade, Journal of Strategy and Management, 3 (3), pp. 215-251. https://doi.org/10.1108/17554251011064837

Hill, T., Westbrook, R. (1997). SWOT analysis: It's time for a product recall, Long Range Planning, 30 (1), pp. 46-52. doi: 10.1016/S0024-6301(96)00095-7

Madsen, D.Ø. (2016). SWOT Analysis: A Management Fashion Perspective. International Journal of Business Research, 16 (1), pp.39-56. doi: 10.18374/IJBR-16-1.3

Piercy, N., Giels, W. (1989). Making SWOT Analysis Work, Marketing Intelligence & Planning, 7 (5/6), pp. 5-7. doi: 10.1108/EUM0000000001042

Preble, J.F. (2003). Integrating the Crisis Management Perspective into the Strategic Management Process. Journal of Management Studies, 34(5), pp. 769-791. doi: 10.1111/1467-6486.00071

Project Management Institute, Inc.. (2017). Guide to the Project Management Body of Knowledge (PMBOK® Guide) (6th Edition), pp 414. Project Management Institute, Inc. (PMI). Retrieved from https://app.knovel.com/hotlink/toc/id:kpGPMBKP02/guide-project-management/guide-project-management

Sarsby, A. (2016). Swot Analysis : A Guide to Swot for Business Studies Students. United Kingdom: Spectaris Ltd.

Steiner, G.A. (1979). Strategic planning: What every manager should know. A step-by-step Guide. New York: Free Press.

Züst, R., Troxler, P. (2006). No More Muddling Through. Dordrecht: Springer.

[[Category:SWOT Analysis]] [[Category:Strategic management]]

SWOT Analysis Guide

2021-02-28T20:31:16Z

Dorothea Georgiadou: /* Introduction */

== Abstract ==
SWOT consists a strategic management tool, mainly used to identify risks during the data analysis process. The acronym of the 4-box strategy development framework stands for Strengths, Weaknesses, Opportunities and Threats and is possible to be applied to different industries, such as commerce, production, planning and voluntary organizations. The first emergence of the term in the literature is traced back to 1960 to investigate what went wrong with corporate planning, funded by the Fortune 500 companies while creating a new system to support management change. Over the past decade, SWOT research has focused on analyzing organizations for recommended strategic actions.

As with every tool or technique, SWOT has also its advantages and limitations. On the one hand, it is an interactional analysis technique that makes macro evaluations possible, in a road from the general perspective and solutions to the more detailed, uncovering opportunities. On the other hand, it has been criticized as prone to bias with questioned validity due to the quantity of different identified factors or failure to easily include dynamic and structural changes in a world based on competition.

The following article aims to investigate the process of conducting a SWOT analysis through a literature review, in order to present a short guide for its implementation. By analyzing the potentials of this tool’s usage, some practical implications are presented, mainly relevant to the combination of SWOT with other strategic planning tools. In addition, the author’s reflections are presented in an attempt to discuss the value and potential improvements in the use of the tool.

== Introduction ==
Strategic planning is a set of concepts, procedures and tools to be used in order for a company/organization to achieve its goals <ref name="Bryson"> </ref> (Bryson, 2003) and is a function of all managers at all levels of an organization (Steiner, 1979). While being a process that deals with the futurity of current decisions, it is also a bulwark to support strategic management (Steiner, 1979).

Strategic management is a continuous process of an organization to formulate and evaluate decisions and plans to achieve a competitive advantage by being proactive (David, 2003; Dyer et al., 2017). The strategic management process is a sequential set of analyses and choices which includes the development of a vision and a mission, translated into a setting of long-term objectives and followed by a strategy crafting to achieve the targeted performance. Next steps are the strategy’s implementation and execution as well as the necessary performance evaluation to review the situation and initiate corrective adjustments (Preble, 2003).

Shedding light to the step of formulating a strategy, the implementation of a thorough external and internal analysis is involved. By conducting an external analysis, the organization is under a process of identifying potential threats and opportunities, focusing especially in the competition and customer analysis, respectively (Dyer et al., 2017). On the other hand, the internal analysis supports the organization to identify its strengths and weaknesses as well as its competitive (dis)advantages. The combined results are often summarized in a SWOT analysis, which consists a strategic management tool, mainly used to identify risks during the data analysis process (Dyer et al., 2017; Helms & Nixon, 2010; Project Management Institute, 2017).

Based on the direct connection of SWOT with strategic management processes, an important notation is that the implementation of the tool does not lead itself to the development of a strategy (Sarsby, 2016). An analysis interpretation as well as decision making, consist independent steps to be followed by the stakeholders.

== Historical development ==
The origin of SWOT analysis is difficult to be traced but the literature review places its emergence mostly back in 1950s and 1960s in the Harvard Business School environment, and mainly associated with Kenneth Andrews, Philip Selznick, Alfred DuPont Chandler and Harry Igor Ansoff (Madsen, 2016; Araştırmalar Dergici, 2017). Although SWOT is highly related to the Harvard Business School, it is worth mentioning that Stanford Research Institute conducted research funded by several Fortune 500 companies in an attempt to boost planning practices and avoid failures. The results were classified into four categories, with a resulting acronym ‘SOFT’ derived from Satisfactory (S), Opportunity (O), Fault (F) and Threat (T). In 1964, Urick and Orr decided to replace Fault (F) for Weakness (W) and that led to today’s well-recognized acronym SWOT (Chermack & Kasshanna, 2007).

Henry Mintzberg classified a preliminary form of SWOT as the main instrument of the Design School of Strategy and criticized the tool as an underlying cause to formalize the strategy making process (Hill & Westbrook, 1997). However, from the mid 60’s, Kenneth Andrews of Harvard Business School, in an attempt to combine competitive thinking with questions of strategy, created with his team the known SWOT analysis, supporting that the most suitable strategy is the one enabling harmonization between the different components of the matrix (Araştırmalar Dergici, 2017).

Following the tool’s timeline, in the 1980s it was used to support SME to create business and market plans, while in the 1990s the tool was also used in the regional development processes, NGOs and projects’ formulation. After the 1990s, the need to the development of such analysis was revealed by criticisms, with number of suggestions relating to the combination of SWOT’s usage with other analysis techniques such as Porter’s Five Forces Model, Cross Impact Analysis, etc. (Araştırmalar Dergici, 2017).
During the years, ‘SWOT has essentially remained unchanged even though many models and frameworks have emerged - these are all variations on the same theme’ (Chermack & Kasshanna, 2007). Despite its different forms and development, it remains a fundamental strategic framework, which contributes to explore new possibilities and initiate new strategies.

== The SWOT framework ==
The analysis of the future constitutes a process which intrigue individuals but also businesses and organizations. The implementation of SWOT analysis forms an alternative to evaluate results from present and future-oriented views (Züst & Troxler, 2006).

=== SWOT Analysis components ===

The acronym of the 4-box strategy development framework stands for Strengths, Weaknesses, Opportunities and Threats. It consists ‘a data gathering framework which records input factors’ (Sarsby, 2016). The most common template of a SWOT analysis is a 2x2 matrix where the rows distinguish in internal or external factors while the columns distinguish between helpful and harmful factors (depending on the context or objective of the analysis). As internal factors, strengths and weaknesses could be characterized as organizational, while the external factors (opportunities and threats) could be characterized as environmental. The SWOT matrix gives the opportunity to examine the interaction between the individual strengths and weaknesses of the system and the opportunities and threats of the future. Pairs of internal and external factors that ‘have the same cause most likely need similar or the same actions’ (Züst & Troxler, 2006).

==== ''Strengths'' ====
Strengths are internal and helpful factors identified in the analysis objective. In this category, organizations might include financial strengths, technological advantages, customer services and human resources (Sarsby, 2016). In general, the characteristics that render an organization more efficient and effective than competitors are included in its strengths (Araştırmalar Dergici, 2017). In relation to the other matrix components, strengths could potentially support an opportunity or contribute to overcome a threat (Sarsby, 2016).

==== ''Weaknesses'' ====
Weaknesses are internal and harmful factors identified in the analysis objective. In this category might be included financial struggles, dated technology, poor customer services and skill shortages related to human resources (Sarsby, 2016). Characteristics included in this category result in lack of competencies and effective performance. Consequently, the identification of weaknesses is highly important as crafting a strategy based on a weakness could lead the company to ‘die quickly’. In relation to the other matrix components, weaknesses complicate the process of taking advantage of an opportunity and are factors more vulnerable to threats (Sarsby, 2016).

==== ''Opportunities'' ====
Opportunities are external and helpful factors, lacking the possibility of control, but if handled right may result to desired results. Opportunities may arise from different resources such as trends, innovations etc. (Sarsby, 2016). Regarding the relation with the other matrix components ‘opportunities are conditions in the external environment that allow an organization to take advantage of organizational strengths, overcome organizational weaknesses or neutralize environmental threats’ (Harrison & St. John, 2004: 164).

==== ''Threats'' ====
Threats are external and harmful factors, over which there is no control (Sarsby, 2016). In relation to the other matrix components, they constitute a risk for opportunities or even organizational strengths.

=== Context of use ===
SWOT analysis is the commonest practical analytical tool for strategic planning, which is used by executives and consultants in different organizations as it is a simple and structured approach to evaluate a company’s strategic position and competitive advantage (Piercy & Giels, 1989). In the form of brainstorming sessions, the tool could be characterized as a dynamic process for decision-making under a specific context, as a Strength in one case could be a Weakness in another (Chermack & Kasshanna, 2007; Sarsby, 2016). The context and the purpose play a vital role in the SWOT analysis (Sarsby, 2016).

Despite a company’s size and general characteristics, there are different general guidelines proposed in the existing literature related to steps and rules to be followed to extract the maximum outcome during a SWOT analysis.

The general steps are described in an attempt to provide a general flow model of SWOT analysis (Chermack & Kasshanna, 2007):
1. Define clearly the main objective and purpose of the analysis: failure to correct identification may lead to resource waste
2. Explain procedure to different stakeholders: as long as the objective is approved by all stakeholders, there is a need to communicate the tool’s nature to set a common ground in the team
3. Brainstorm individually and list, in a 2 by 2 matrix, organization’s strengths, weaknesses, opportunities and threats: ask participants to work individually in a worksheet to record strengths, weaknesses, opportunities and threats the organization is facing currently. Help questions could be: What to we do well? What could we improve? What trends could you take advantage of? What is your competition doing?
4. Combine individuals worksheet in a common document: incorporate all responses in a common worksheet and distribute it to each participant
5. Trigger team’s communication through dialogue and debate related to each item’s classification: facilitate strategic dialogue to explore reasons behind individuals’ viewpoints and reach a decision
6. Develop and decide particular actions to forward the process

Besides the above-described procedure, in order to produce dynamic results through a SWOT analysis, a number of ‘rules’ to be followed, during each step, are presented below (Piercy & Giels, 1989):
• Focused SWOTs: thoroughly defined evaluated area to maximize productivity of the analysis
• Shared vision: idea polling, reveal team consensus, team communication and agreement
• Customer orientation: include in the evaluation of strengths and weaknesses, resources or capabilities recognized by the interested customer
• Environmental analysis: include in the identification of opportunities and threats relevant to the customer
• Structured strategy generation: after the completion of the matrix investigate matching, conversion and creative strategies

== Discussion ==
=== Advantages ===
Although an assessment of SWOT’s effectiveness is not an easy task, due to its numerous advantages, SWOT has been characterized as ‘the most widely used strategy tool in modern times’ (Chermack & Kasshanna, 2007; Sarsby, 2016). More specifically:
• It consists a simple technique as its implementation does not require an in-depth scientific knowledge (Piercy & Giels, 1989).
• It is a flexible model which can incorporate corporate or market information systems on request (Piercy & Giels, 1989).
• Easy method to structure complicated information such as qualitative and quantitative data, etc. (Piercy & Giels, 1989).
• The field of application covers many levels of an organization (from an individual to a corporate strategy) and different depths of analysis (Sarsby, 2016).
• Its visualization facilitates a holistic overview of the process and further communication of it with interested participants (Sarsby, 2016).
• It can be used as a guide to build on strengths, correct weaknesses, recognize and exploit new opportunities and protect against threats.

=== Disadvantages & Limitations ===
Despite its advantages based on its simplicity and the variety of collective information included, SWOT had also received a significant amount of criticism. A few of this include:
• Prompt to bias matrix completion due to individuals’ perceptions, beliefs and preferences (Sarsby, 2016).
• A pool of data collection without separating analysis elements and their evaluation, resulting to a long list (Sarsby, 2016; Hill & Westbrook, 1997).
• Tool usage has become ‘sloppy and unfocused’ (Piercy & Giels, 1989).
• Lack of prioritization or weight of identified of factors, giving the same importance to all of them (Hill & Westbrook, 1997).
• There is not a requirement to support statements with data (Hill & Westbrook, 1997). Consequently, it is also possible to list the same factor as a strength or weakness, depending on the viewpoint.
• As SWOT records facts of a specific timeframe, there is need for updates to maintain and develop the analysis.

=== Reflections ===
The following figure is an attempt to implement a SWOT analysis for the SWOT analysis tool, to reflect on the value of its usage. While classifying the factors in the four quadrants, strengths such as ‘visualization’ and weaknesses such as the difficulty of brainstorming whether a factor is a strength or weakness, became clearly apparent.

== References ==
<references/>
Araştırmalar Dergici, U.S. (2017). SWOT Analysis: A theoretical review, The Journal of International Social Research, 10 (51), pp. 994-1006. doi: 10.17719/jisr.2017.1832

Bryson, J.M. (2003). Strategic Planning and Management. In B. Guy Peters and John Pierre, Handbook of Public Administration, pp. 38- 47, London: SAGE Publications Ltd.

Chermack, T.H, Kasshanna, B.K. (2007). The Use and Misuse of SWOT Analysis and Implications for HRD Professionals, Human Resource Development International, 10 (4), pp. 383-399, doi: 10.1080/13678860701718760

David, F.R. (2003). Strategic Management-Concepts and Cases (9th Edition). USA: Pearson Education.

Dyer, J.H, Godfrey, P., Jensen, R., Bryce, D. (2017). Strategic Management: Concepts and Cases (2nd Edition). USA: Wiley

Helms, M.M. and Nixon, J. (2010). Exploring SWOT analysis – where are we now? A review of academic research from the last decade, Journal of Strategy and Management, 3 (3), pp. 215-251. https://doi.org/10.1108/17554251011064837

Hill, T., Westbrook, R. (1997). SWOT analysis: It's time for a product recall, Long Range Planning, 30 (1), pp. 46-52. doi: 10.1016/S0024-6301(96)00095-7

Madsen, D.Ø. (2016). SWOT Analysis: A Management Fashion Perspective. International Journal of Business Research, 16 (1), pp.39-56. doi: 10.18374/IJBR-16-1.3

Piercy, N., Giels, W. (1989). Making SWOT Analysis Work, Marketing Intelligence & Planning, 7 (5/6), pp. 5-7. doi: 10.1108/EUM0000000001042

Preble, J.F. (2003). Integrating the Crisis Management Perspective into the Strategic Management Process. Journal of Management Studies, 34(5), pp. 769-791. doi: 10.1111/1467-6486.00071

Project Management Institute, Inc.. (2017). Guide to the Project Management Body of Knowledge (PMBOK® Guide) (6th Edition), pp 414. Project Management Institute, Inc. (PMI). Retrieved from https://app.knovel.com/hotlink/toc/id:kpGPMBKP02/guide-project-management/guide-project-management

Sarsby, A. (2016). Swot Analysis : A Guide to Swot for Business Studies Students. United Kingdom: Spectaris Ltd.

Steiner, G.A. (1979). Strategic planning: What every manager should know. A step-by-step Guide. New York: Free Press.

Züst, R., Troxler, P. (2006). No More Muddling Through. Dordrecht: Springer.

[[Category:SWOT Analysis]] [[Category:Strategic management]]

SWOT Analysis Guide

2021-02-28T20:30:37Z

Dorothea Georgiadou: /* Introduction */

== Abstract ==
SWOT consists a strategic management tool, mainly used to identify risks during the data analysis process. The acronym of the 4-box strategy development framework stands for Strengths, Weaknesses, Opportunities and Threats and is possible to be applied to different industries, such as commerce, production, planning and voluntary organizations. The first emergence of the term in the literature is traced back to 1960 to investigate what went wrong with corporate planning, funded by the Fortune 500 companies while creating a new system to support management change. Over the past decade, SWOT research has focused on analyzing organizations for recommended strategic actions.

As with every tool or technique, SWOT has also its advantages and limitations. On the one hand, it is an interactional analysis technique that makes macro evaluations possible, in a road from the general perspective and solutions to the more detailed, uncovering opportunities. On the other hand, it has been criticized as prone to bias with questioned validity due to the quantity of different identified factors or failure to easily include dynamic and structural changes in a world based on competition.

The following article aims to investigate the process of conducting a SWOT analysis through a literature review, in order to present a short guide for its implementation. By analyzing the potentials of this tool’s usage, some practical implications are presented, mainly relevant to the combination of SWOT with other strategic planning tools. In addition, the author’s reflections are presented in an attempt to discuss the value and potential improvements in the use of the tool.

== Introduction ==
Strategic planning is a set of concepts, procedures and tools to be used in order for a company/organization to achieve its goals <ref name="Pmi"> Project Mangement Institute. "Practice standard for project risk management." Project Management Institute, 2009. </ref> (Bryson, 2003) and is a function of all managers at all levels of an organization (Steiner, 1979). While being a process that deals with the futurity of current decisions, it is also a bulwark to support strategic management (Steiner, 1979).

Strategic management is a continuous process of an organization to formulate and evaluate decisions and plans to achieve a competitive advantage by being proactive (David, 2003; Dyer et al., 2017). The strategic management process is a sequential set of analyses and choices which includes the development of a vision and a mission, translated into a setting of long-term objectives and followed by a strategy crafting to achieve the targeted performance. Next steps are the strategy’s implementation and execution as well as the necessary performance evaluation to review the situation and initiate corrective adjustments (Preble, 2003).

Shedding light to the step of formulating a strategy, the implementation of a thorough external and internal analysis is involved. By conducting an external analysis, the organization is under a process of identifying potential threats and opportunities, focusing especially in the competition and customer analysis, respectively (Dyer et al., 2017). On the other hand, the internal analysis supports the organization to identify its strengths and weaknesses as well as its competitive (dis)advantages. The combined results are often summarized in a SWOT analysis, which consists a strategic management tool, mainly used to identify risks during the data analysis process (Dyer et al., 2017; Helms & Nixon, 2010; Project Management Institute, 2017).

Based on the direct connection of SWOT with strategic management processes, an important notation is that the implementation of the tool does not lead itself to the development of a strategy (Sarsby, 2016). An analysis interpretation as well as decision making, consist independent steps to be followed by the stakeholders.

== Historical development ==
The origin of SWOT analysis is difficult to be traced but the literature review places its emergence mostly back in 1950s and 1960s in the Harvard Business School environment, and mainly associated with Kenneth Andrews, Philip Selznick, Alfred DuPont Chandler and Harry Igor Ansoff (Madsen, 2016; Araştırmalar Dergici, 2017). Although SWOT is highly related to the Harvard Business School, it is worth mentioning that Stanford Research Institute conducted research funded by several Fortune 500 companies in an attempt to boost planning practices and avoid failures. The results were classified into four categories, with a resulting acronym ‘SOFT’ derived from Satisfactory (S), Opportunity (O), Fault (F) and Threat (T). In 1964, Urick and Orr decided to replace Fault (F) for Weakness (W) and that led to today’s well-recognized acronym SWOT (Chermack & Kasshanna, 2007).

Henry Mintzberg classified a preliminary form of SWOT as the main instrument of the Design School of Strategy and criticized the tool as an underlying cause to formalize the strategy making process (Hill & Westbrook, 1997). However, from the mid 60’s, Kenneth Andrews of Harvard Business School, in an attempt to combine competitive thinking with questions of strategy, created with his team the known SWOT analysis, supporting that the most suitable strategy is the one enabling harmonization between the different components of the matrix (Araştırmalar Dergici, 2017).

Following the tool’s timeline, in the 1980s it was used to support SME to create business and market plans, while in the 1990s the tool was also used in the regional development processes, NGOs and projects’ formulation. After the 1990s, the need to the development of such analysis was revealed by criticisms, with number of suggestions relating to the combination of SWOT’s usage with other analysis techniques such as Porter’s Five Forces Model, Cross Impact Analysis, etc. (Araştırmalar Dergici, 2017).
During the years, ‘SWOT has essentially remained unchanged even though many models and frameworks have emerged - these are all variations on the same theme’ (Chermack & Kasshanna, 2007). Despite its different forms and development, it remains a fundamental strategic framework, which contributes to explore new possibilities and initiate new strategies.

== The SWOT framework ==
The analysis of the future constitutes a process which intrigue individuals but also businesses and organizations. The implementation of SWOT analysis forms an alternative to evaluate results from present and future-oriented views (Züst & Troxler, 2006).

=== SWOT Analysis components ===

The acronym of the 4-box strategy development framework stands for Strengths, Weaknesses, Opportunities and Threats. It consists ‘a data gathering framework which records input factors’ (Sarsby, 2016). The most common template of a SWOT analysis is a 2x2 matrix where the rows distinguish in internal or external factors while the columns distinguish between helpful and harmful factors (depending on the context or objective of the analysis). As internal factors, strengths and weaknesses could be characterized as organizational, while the external factors (opportunities and threats) could be characterized as environmental. The SWOT matrix gives the opportunity to examine the interaction between the individual strengths and weaknesses of the system and the opportunities and threats of the future. Pairs of internal and external factors that ‘have the same cause most likely need similar or the same actions’ (Züst & Troxler, 2006).

==== ''Strengths'' ====
Strengths are internal and helpful factors identified in the analysis objective. In this category, organizations might include financial strengths, technological advantages, customer services and human resources (Sarsby, 2016). In general, the characteristics that render an organization more efficient and effective than competitors are included in its strengths (Araştırmalar Dergici, 2017). In relation to the other matrix components, strengths could potentially support an opportunity or contribute to overcome a threat (Sarsby, 2016).

==== ''Weaknesses'' ====
Weaknesses are internal and harmful factors identified in the analysis objective. In this category might be included financial struggles, dated technology, poor customer services and skill shortages related to human resources (Sarsby, 2016). Characteristics included in this category result in lack of competencies and effective performance. Consequently, the identification of weaknesses is highly important as crafting a strategy based on a weakness could lead the company to ‘die quickly’. In relation to the other matrix components, weaknesses complicate the process of taking advantage of an opportunity and are factors more vulnerable to threats (Sarsby, 2016).

==== ''Opportunities'' ====
Opportunities are external and helpful factors, lacking the possibility of control, but if handled right may result to desired results. Opportunities may arise from different resources such as trends, innovations etc. (Sarsby, 2016). Regarding the relation with the other matrix components ‘opportunities are conditions in the external environment that allow an organization to take advantage of organizational strengths, overcome organizational weaknesses or neutralize environmental threats’ (Harrison & St. John, 2004: 164).

==== ''Threats'' ====
Threats are external and harmful factors, over which there is no control (Sarsby, 2016). In relation to the other matrix components, they constitute a risk for opportunities or even organizational strengths.

=== Context of use ===
SWOT analysis is the commonest practical analytical tool for strategic planning, which is used by executives and consultants in different organizations as it is a simple and structured approach to evaluate a company’s strategic position and competitive advantage (Piercy & Giels, 1989). In the form of brainstorming sessions, the tool could be characterized as a dynamic process for decision-making under a specific context, as a Strength in one case could be a Weakness in another (Chermack & Kasshanna, 2007; Sarsby, 2016). The context and the purpose play a vital role in the SWOT analysis (Sarsby, 2016).

Despite a company’s size and general characteristics, there are different general guidelines proposed in the existing literature related to steps and rules to be followed to extract the maximum outcome during a SWOT analysis.

The general steps are described in an attempt to provide a general flow model of SWOT analysis (Chermack & Kasshanna, 2007):
1. Define clearly the main objective and purpose of the analysis: failure to correct identification may lead to resource waste
2. Explain procedure to different stakeholders: as long as the objective is approved by all stakeholders, there is a need to communicate the tool’s nature to set a common ground in the team
3. Brainstorm individually and list, in a 2 by 2 matrix, organization’s strengths, weaknesses, opportunities and threats: ask participants to work individually in a worksheet to record strengths, weaknesses, opportunities and threats the organization is facing currently. Help questions could be: What to we do well? What could we improve? What trends could you take advantage of? What is your competition doing?
4. Combine individuals worksheet in a common document: incorporate all responses in a common worksheet and distribute it to each participant
5. Trigger team’s communication through dialogue and debate related to each item’s classification: facilitate strategic dialogue to explore reasons behind individuals’ viewpoints and reach a decision
6. Develop and decide particular actions to forward the process

Besides the above-described procedure, in order to produce dynamic results through a SWOT analysis, a number of ‘rules’ to be followed, during each step, are presented below (Piercy & Giels, 1989):
• Focused SWOTs: thoroughly defined evaluated area to maximize productivity of the analysis
• Shared vision: idea polling, reveal team consensus, team communication and agreement
• Customer orientation: include in the evaluation of strengths and weaknesses, resources or capabilities recognized by the interested customer
• Environmental analysis: include in the identification of opportunities and threats relevant to the customer
• Structured strategy generation: after the completion of the matrix investigate matching, conversion and creative strategies

== Discussion ==
=== Advantages ===
Although an assessment of SWOT’s effectiveness is not an easy task, due to its numerous advantages, SWOT has been characterized as ‘the most widely used strategy tool in modern times’ (Chermack & Kasshanna, 2007; Sarsby, 2016). More specifically:
• It consists a simple technique as its implementation does not require an in-depth scientific knowledge (Piercy & Giels, 1989).
• It is a flexible model which can incorporate corporate or market information systems on request (Piercy & Giels, 1989).
• Easy method to structure complicated information such as qualitative and quantitative data, etc. (Piercy & Giels, 1989).
• The field of application covers many levels of an organization (from an individual to a corporate strategy) and different depths of analysis (Sarsby, 2016).
• Its visualization facilitates a holistic overview of the process and further communication of it with interested participants (Sarsby, 2016).
• It can be used as a guide to build on strengths, correct weaknesses, recognize and exploit new opportunities and protect against threats.

=== Disadvantages & Limitations ===
Despite its advantages based on its simplicity and the variety of collective information included, SWOT had also received a significant amount of criticism. A few of this include:
• Prompt to bias matrix completion due to individuals’ perceptions, beliefs and preferences (Sarsby, 2016).
• A pool of data collection without separating analysis elements and their evaluation, resulting to a long list (Sarsby, 2016; Hill & Westbrook, 1997).
• Tool usage has become ‘sloppy and unfocused’ (Piercy & Giels, 1989).
• Lack of prioritization or weight of identified of factors, giving the same importance to all of them (Hill & Westbrook, 1997).
• There is not a requirement to support statements with data (Hill & Westbrook, 1997). Consequently, it is also possible to list the same factor as a strength or weakness, depending on the viewpoint.
• As SWOT records facts of a specific timeframe, there is need for updates to maintain and develop the analysis.

=== Reflections ===
The following figure is an attempt to implement a SWOT analysis for the SWOT analysis tool, to reflect on the value of its usage. While classifying the factors in the four quadrants, strengths such as ‘visualization’ and weaknesses such as the difficulty of brainstorming whether a factor is a strength or weakness, became clearly apparent.

== References ==
<references/>
Araştırmalar Dergici, U.S. (2017). SWOT Analysis: A theoretical review, The Journal of International Social Research, 10 (51), pp. 994-1006. doi: 10.17719/jisr.2017.1832

Bryson, J.M. (2003). Strategic Planning and Management. In B. Guy Peters and John Pierre, Handbook of Public Administration, pp. 38- 47, London: SAGE Publications Ltd.

Chermack, T.H, Kasshanna, B.K. (2007). The Use and Misuse of SWOT Analysis and Implications for HRD Professionals, Human Resource Development International, 10 (4), pp. 383-399, doi: 10.1080/13678860701718760

David, F.R. (2003). Strategic Management-Concepts and Cases (9th Edition). USA: Pearson Education.

Dyer, J.H, Godfrey, P., Jensen, R., Bryce, D. (2017). Strategic Management: Concepts and Cases (2nd Edition). USA: Wiley

Helms, M.M. and Nixon, J. (2010). Exploring SWOT analysis – where are we now? A review of academic research from the last decade, Journal of Strategy and Management, 3 (3), pp. 215-251. https://doi.org/10.1108/17554251011064837

Hill, T., Westbrook, R. (1997). SWOT analysis: It's time for a product recall, Long Range Planning, 30 (1), pp. 46-52. doi: 10.1016/S0024-6301(96)00095-7

Madsen, D.Ø. (2016). SWOT Analysis: A Management Fashion Perspective. International Journal of Business Research, 16 (1), pp.39-56. doi: 10.18374/IJBR-16-1.3

Piercy, N., Giels, W. (1989). Making SWOT Analysis Work, Marketing Intelligence & Planning, 7 (5/6), pp. 5-7. doi: 10.1108/EUM0000000001042

Preble, J.F. (2003). Integrating the Crisis Management Perspective into the Strategic Management Process. Journal of Management Studies, 34(5), pp. 769-791. doi: 10.1111/1467-6486.00071

Project Management Institute, Inc.. (2017). Guide to the Project Management Body of Knowledge (PMBOK® Guide) (6th Edition), pp 414. Project Management Institute, Inc. (PMI). Retrieved from https://app.knovel.com/hotlink/toc/id:kpGPMBKP02/guide-project-management/guide-project-management

Sarsby, A. (2016). Swot Analysis : A Guide to Swot for Business Studies Students. United Kingdom: Spectaris Ltd.

Steiner, G.A. (1979). Strategic planning: What every manager should know. A step-by-step Guide. New York: Free Press.

Züst, R., Troxler, P. (2006). No More Muddling Through. Dordrecht: Springer.

[[Category:SWOT Analysis]] [[Category:Strategic management]]

SWOT Analysis Guide

2021-02-28T20:29:14Z

Dorothea Georgiadou: /* References */

== Abstract ==
SWOT consists a strategic management tool, mainly used to identify risks during the data analysis process. The acronym of the 4-box strategy development framework stands for Strengths, Weaknesses, Opportunities and Threats and is possible to be applied to different industries, such as commerce, production, planning and voluntary organizations. The first emergence of the term in the literature is traced back to 1960 to investigate what went wrong with corporate planning, funded by the Fortune 500 companies while creating a new system to support management change. Over the past decade, SWOT research has focused on analyzing organizations for recommended strategic actions.

As with every tool or technique, SWOT has also its advantages and limitations. On the one hand, it is an interactional analysis technique that makes macro evaluations possible, in a road from the general perspective and solutions to the more detailed, uncovering opportunities. On the other hand, it has been criticized as prone to bias with questioned validity due to the quantity of different identified factors or failure to easily include dynamic and structural changes in a world based on competition.

The following article aims to investigate the process of conducting a SWOT analysis through a literature review, in order to present a short guide for its implementation. By analyzing the potentials of this tool’s usage, some practical implications are presented, mainly relevant to the combination of SWOT with other strategic planning tools. In addition, the author’s reflections are presented in an attempt to discuss the value and potential improvements in the use of the tool.

== Introduction ==
Strategic planning is a set of concepts, procedures and tools to be used in order for a company/organization to achieve its goals (Bryson, 2003) and is a function of all managers at all levels of an organization (Steiner, 1979). While being a process that deals with the futurity of current decisions, it is also a bulwark to support strategic management (Steiner, 1979).

Strategic management is a continuous process of an organization to formulate and evaluate decisions and plans to achieve a competitive advantage by being proactive (David, 2003; Dyer et al., 2017). The strategic management process is a sequential set of analyses and choices which includes the development of a vision and a mission, translated into a setting of long-term objectives and followed by a strategy crafting to achieve the targeted performance. Next steps are the strategy’s implementation and execution as well as the necessary performance evaluation to review the situation and initiate corrective adjustments (Preble, 2003).

Shedding light to the step of formulating a strategy, the implementation of a thorough external and internal analysis is involved. By conducting an external analysis, the organization is under a process of identifying potential threats and opportunities, focusing especially in the competition and customer analysis, respectively (Dyer et al., 2017). On the other hand, the internal analysis supports the organization to identify its strengths and weaknesses as well as its competitive (dis)advantages. The combined results are often summarized in a SWOT analysis, which consists a strategic management tool, mainly used to identify risks during the data analysis process (Dyer et al., 2017; Helms & Nixon, 2010; Project Management Institute, 2017).

Based on the direct connection of SWOT with strategic management processes, an important notation is that the implementation of the tool does not lead itself to the development of a strategy (Sarsby, 2016). An analysis interpretation as well as decision making, consist independent steps to be followed by the stakeholders.

== Historical development ==
The origin of SWOT analysis is difficult to be traced but the literature review places its emergence mostly back in 1950s and 1960s in the Harvard Business School environment, and mainly associated with Kenneth Andrews, Philip Selznick, Alfred DuPont Chandler and Harry Igor Ansoff (Madsen, 2016; Araştırmalar Dergici, 2017). Although SWOT is highly related to the Harvard Business School, it is worth mentioning that Stanford Research Institute conducted research funded by several Fortune 500 companies in an attempt to boost planning practices and avoid failures. The results were classified into four categories, with a resulting acronym ‘SOFT’ derived from Satisfactory (S), Opportunity (O), Fault (F) and Threat (T). In 1964, Urick and Orr decided to replace Fault (F) for Weakness (W) and that led to today’s well-recognized acronym SWOT (Chermack & Kasshanna, 2007).

Henry Mintzberg classified a preliminary form of SWOT as the main instrument of the Design School of Strategy and criticized the tool as an underlying cause to formalize the strategy making process (Hill & Westbrook, 1997). However, from the mid 60’s, Kenneth Andrews of Harvard Business School, in an attempt to combine competitive thinking with questions of strategy, created with his team the known SWOT analysis, supporting that the most suitable strategy is the one enabling harmonization between the different components of the matrix (Araştırmalar Dergici, 2017).

Following the tool’s timeline, in the 1980s it was used to support SME to create business and market plans, while in the 1990s the tool was also used in the regional development processes, NGOs and projects’ formulation. After the 1990s, the need to the development of such analysis was revealed by criticisms, with number of suggestions relating to the combination of SWOT’s usage with other analysis techniques such as Porter’s Five Forces Model, Cross Impact Analysis, etc. (Araştırmalar Dergici, 2017).
During the years, ‘SWOT has essentially remained unchanged even though many models and frameworks have emerged - these are all variations on the same theme’ (Chermack & Kasshanna, 2007). Despite its different forms and development, it remains a fundamental strategic framework, which contributes to explore new possibilities and initiate new strategies.

== The SWOT framework ==
The analysis of the future constitutes a process which intrigue individuals but also businesses and organizations. The implementation of SWOT analysis forms an alternative to evaluate results from present and future-oriented views (Züst & Troxler, 2006).

=== SWOT Analysis components ===

The acronym of the 4-box strategy development framework stands for Strengths, Weaknesses, Opportunities and Threats. It consists ‘a data gathering framework which records input factors’ (Sarsby, 2016). The most common template of a SWOT analysis is a 2x2 matrix where the rows distinguish in internal or external factors while the columns distinguish between helpful and harmful factors (depending on the context or objective of the analysis). As internal factors, strengths and weaknesses could be characterized as organizational, while the external factors (opportunities and threats) could be characterized as environmental. The SWOT matrix gives the opportunity to examine the interaction between the individual strengths and weaknesses of the system and the opportunities and threats of the future. Pairs of internal and external factors that ‘have the same cause most likely need similar or the same actions’ (Züst & Troxler, 2006).

==== ''Strengths'' ====
Strengths are internal and helpful factors identified in the analysis objective. In this category, organizations might include financial strengths, technological advantages, customer services and human resources (Sarsby, 2016). In general, the characteristics that render an organization more efficient and effective than competitors are included in its strengths (Araştırmalar Dergici, 2017). In relation to the other matrix components, strengths could potentially support an opportunity or contribute to overcome a threat (Sarsby, 2016).

==== ''Weaknesses'' ====
Weaknesses are internal and harmful factors identified in the analysis objective. In this category might be included financial struggles, dated technology, poor customer services and skill shortages related to human resources (Sarsby, 2016). Characteristics included in this category result in lack of competencies and effective performance. Consequently, the identification of weaknesses is highly important as crafting a strategy based on a weakness could lead the company to ‘die quickly’. In relation to the other matrix components, weaknesses complicate the process of taking advantage of an opportunity and are factors more vulnerable to threats (Sarsby, 2016).

==== ''Opportunities'' ====
Opportunities are external and helpful factors, lacking the possibility of control, but if handled right may result to desired results. Opportunities may arise from different resources such as trends, innovations etc. (Sarsby, 2016). Regarding the relation with the other matrix components ‘opportunities are conditions in the external environment that allow an organization to take advantage of organizational strengths, overcome organizational weaknesses or neutralize environmental threats’ (Harrison & St. John, 2004: 164).

==== ''Threats'' ====
Threats are external and harmful factors, over which there is no control (Sarsby, 2016). In relation to the other matrix components, they constitute a risk for opportunities or even organizational strengths.

=== Context of use ===
SWOT analysis is the commonest practical analytical tool for strategic planning, which is used by executives and consultants in different organizations as it is a simple and structured approach to evaluate a company’s strategic position and competitive advantage (Piercy & Giels, 1989). In the form of brainstorming sessions, the tool could be characterized as a dynamic process for decision-making under a specific context, as a Strength in one case could be a Weakness in another (Chermack & Kasshanna, 2007; Sarsby, 2016). The context and the purpose play a vital role in the SWOT analysis (Sarsby, 2016).

Despite a company’s size and general characteristics, there are different general guidelines proposed in the existing literature related to steps and rules to be followed to extract the maximum outcome during a SWOT analysis.

The general steps are described in an attempt to provide a general flow model of SWOT analysis (Chermack & Kasshanna, 2007):
1. Define clearly the main objective and purpose of the analysis: failure to correct identification may lead to resource waste
2. Explain procedure to different stakeholders: as long as the objective is approved by all stakeholders, there is a need to communicate the tool’s nature to set a common ground in the team
3. Brainstorm individually and list, in a 2 by 2 matrix, organization’s strengths, weaknesses, opportunities and threats: ask participants to work individually in a worksheet to record strengths, weaknesses, opportunities and threats the organization is facing currently. Help questions could be: What to we do well? What could we improve? What trends could you take advantage of? What is your competition doing?
4. Combine individuals worksheet in a common document: incorporate all responses in a common worksheet and distribute it to each participant
5. Trigger team’s communication through dialogue and debate related to each item’s classification: facilitate strategic dialogue to explore reasons behind individuals’ viewpoints and reach a decision
6. Develop and decide particular actions to forward the process

Besides the above-described procedure, in order to produce dynamic results through a SWOT analysis, a number of ‘rules’ to be followed, during each step, are presented below (Piercy & Giels, 1989):
• Focused SWOTs: thoroughly defined evaluated area to maximize productivity of the analysis
• Shared vision: idea polling, reveal team consensus, team communication and agreement
• Customer orientation: include in the evaluation of strengths and weaknesses, resources or capabilities recognized by the interested customer
• Environmental analysis: include in the identification of opportunities and threats relevant to the customer
• Structured strategy generation: after the completion of the matrix investigate matching, conversion and creative strategies

== Discussion ==
=== Advantages ===
Although an assessment of SWOT’s effectiveness is not an easy task, due to its numerous advantages, SWOT has been characterized as ‘the most widely used strategy tool in modern times’ (Chermack & Kasshanna, 2007; Sarsby, 2016). More specifically:
• It consists a simple technique as its implementation does not require an in-depth scientific knowledge (Piercy & Giels, 1989).
• It is a flexible model which can incorporate corporate or market information systems on request (Piercy & Giels, 1989).
• Easy method to structure complicated information such as qualitative and quantitative data, etc. (Piercy & Giels, 1989).
• The field of application covers many levels of an organization (from an individual to a corporate strategy) and different depths of analysis (Sarsby, 2016).
• Its visualization facilitates a holistic overview of the process and further communication of it with interested participants (Sarsby, 2016).
• It can be used as a guide to build on strengths, correct weaknesses, recognize and exploit new opportunities and protect against threats.

=== Disadvantages & Limitations ===
Despite its advantages based on its simplicity and the variety of collective information included, SWOT had also received a significant amount of criticism. A few of this include:
• Prompt to bias matrix completion due to individuals’ perceptions, beliefs and preferences (Sarsby, 2016).
• A pool of data collection without separating analysis elements and their evaluation, resulting to a long list (Sarsby, 2016; Hill & Westbrook, 1997).
• Tool usage has become ‘sloppy and unfocused’ (Piercy & Giels, 1989).
• Lack of prioritization or weight of identified of factors, giving the same importance to all of them (Hill & Westbrook, 1997).
• There is not a requirement to support statements with data (Hill & Westbrook, 1997). Consequently, it is also possible to list the same factor as a strength or weakness, depending on the viewpoint.
• As SWOT records facts of a specific timeframe, there is need for updates to maintain and develop the analysis.

=== Reflections ===
The following figure is an attempt to implement a SWOT analysis for the SWOT analysis tool, to reflect on the value of its usage. While classifying the factors in the four quadrants, strengths such as ‘visualization’ and weaknesses such as the difficulty of brainstorming whether a factor is a strength or weakness, became clearly apparent.

== References ==
<references/>
Araştırmalar Dergici, U.S. (2017). SWOT Analysis: A theoretical review, The Journal of International Social Research, 10 (51), pp. 994-1006. doi: 10.17719/jisr.2017.1832

Bryson, J.M. (2003). Strategic Planning and Management. In B. Guy Peters and John Pierre, Handbook of Public Administration, pp. 38- 47, London: SAGE Publications Ltd.

Chermack, T.H, Kasshanna, B.K. (2007). The Use and Misuse of SWOT Analysis and Implications for HRD Professionals, Human Resource Development International, 10 (4), pp. 383-399, doi: 10.1080/13678860701718760

David, F.R. (2003). Strategic Management-Concepts and Cases (9th Edition). USA: Pearson Education.

Dyer, J.H, Godfrey, P., Jensen, R., Bryce, D. (2017). Strategic Management: Concepts and Cases (2nd Edition). USA: Wiley

Helms, M.M. and Nixon, J. (2010). Exploring SWOT analysis – where are we now? A review of academic research from the last decade, Journal of Strategy and Management, 3 (3), pp. 215-251. https://doi.org/10.1108/17554251011064837

Hill, T., Westbrook, R. (1997). SWOT analysis: It's time for a product recall, Long Range Planning, 30 (1), pp. 46-52. doi: 10.1016/S0024-6301(96)00095-7

Madsen, D.Ø. (2016). SWOT Analysis: A Management Fashion Perspective. International Journal of Business Research, 16 (1), pp.39-56. doi: 10.18374/IJBR-16-1.3

Piercy, N., Giels, W. (1989). Making SWOT Analysis Work, Marketing Intelligence & Planning, 7 (5/6), pp. 5-7. doi: 10.1108/EUM0000000001042

Preble, J.F. (2003). Integrating the Crisis Management Perspective into the Strategic Management Process. Journal of Management Studies, 34(5), pp. 769-791. doi: 10.1111/1467-6486.00071

Project Management Institute, Inc.. (2017). Guide to the Project Management Body of Knowledge (PMBOK® Guide) (6th Edition), pp 414. Project Management Institute, Inc. (PMI). Retrieved from https://app.knovel.com/hotlink/toc/id:kpGPMBKP02/guide-project-management/guide-project-management

Sarsby, A. (2016). Swot Analysis : A Guide to Swot for Business Studies Students. United Kingdom: Spectaris Ltd.

Steiner, G.A. (1979). Strategic planning: What every manager should know. A step-by-step Guide. New York: Free Press.

Züst, R., Troxler, P. (2006). No More Muddling Through. Dordrecht: Springer.

[[Category:SWOT Analysis]] [[Category:Strategic management]]

Risk Register analysis

2021-02-28T20:15:53Z

Dorothea Georgiadou: /* 3. How to respond to the risks */

Developed by Dorothea Georgiadou

In an age where the economic, social, and political environment is constantly shifting, there is an urgent need to study the risks that may threaten the success of a project. It is particularly important to study the risks that may adversely affect the project and lead to events that might have as a consequence the exceeding of the agreed budget and time. For this reason, the risk management planning should identify and describe in detail the potential risks by providing the needed information for the actions that should be done for eliminating their negative impact. The high uncertainty that exists in projects necessitates the use of a management tool that will control the risks. <ref name="Pmi"> Project Mangement Institute. "Practice standard for project risk management." Project Management Institute, 2009. </ref> In this article the risk management framework ‘’Risk register’’ is explained. The risk register is a tool that covers and studies many aspects of risk management processes. More specifically, the aim of this article is to explain how this tool can be used to document the outcomes of the risk management processes. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013, Retrieved from:https://www.researchgate.net/publication/263528336_Risk_register_developement_and_implementation_for_construction_projects </ref> The article provides a description of the tool along with the reasons that it should be used. It is a framework that aims to record the information from the processes related to the identification, assessment, responding, and monitoring of potential risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. Finally, the article analyzes along with the benefits also the limitations of this risk management tool.

== Why use risk register? ==
In an ever-changing environment, a projects’ success is associated with a high level of uncertainty. In the ‘Practice Standard for Project Risk Management’, risk management is an approach that plays a vital role in the strategic and decision-making processes since adjustments in the project management planning can be done after the identification of the projects’ challenges. The risk register framework is used to support the risk management process in order to eliminate the negative impact that the various threats might have on a project. Threats could come from the external and internal environment of the company. The external risks are associated with the economic, social, political, and technological environment, while the internal threats include risks that are related to human actions and estimations. <ref name="Pmi" /> <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. For example, it is possible for people to make wrong estimations because of inexperience and underestimation of some threats. This high level of uncertainty makes it increasingly necessary to use a model that assists the risk management process in a more effective way. <ref name="Pmi" /> <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>.
=== The role of Risk Register ===
In ''‘Practice Standard for Project Risk Management’'', the risk register is defined as the framework that is used in project risk management for the documentation of the identified risks. It records all the needed information that will be the steppingstone to overcome the risks that might menace projects' success. <ref name="Pmi" /> It is worth noting that based on ''‘PRINCE2’'', the risks are divided into threats and opportunities. Threats are the risks that could have negative consequences for the project, while opportunities could bring positive outcomes to the company. <ref name="PRINCE"> Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017) Retrieved from: https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=4863041</ref> The article is mainly focused on the documentation of the various threats in the risk register. The importance of the tool is highlighted in the fact that it can assist project managers with tackling potential threats and to have a better and clearer overview of the internal and external risks that might negatively affect the success of the project. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref> The aim of the risk register is to record information related to the identification, assessment, evaluation of importance, and managing of the potential risks. <ref name="Pmi" /> <ref name="PRINCE" /> More specifically, the uncertainty that exists in projects makes it necessary to use a model that provides various information for the events that could threaten the projects. <ref name="Pmi" />

In the ''‘PMBOK guide ’ ''it is outlined that the tool risk register can be used in different phases of a project. Firstly, it can be used at a very early stage of a project in order to provide information for the risks that might be a threat. Secondly, as the project continues, new threats are recorded and documented in the risk register. In other words, it is used to update the new risks and inform the risk owners how they should monitor the new threats. Finally, it documents all the risks that have been recorded after the completion of a project. <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>

=== Elements of Risk Register===

As can be seen in figure 1, the implementation of the risk register model follows four processes. Firstly, the risks have to be identified. Secondly, they have to be assessed based on their impact and probability. After risk assessment, it is important to define the actions that must be taken, in order to manage the risks. The final process of the risk register model follows, deals with the ways the risks can be monitored. <ref name="Pmi" /> <ref name="ot" /> <ref name="PRINCE"/> The outcome of the previously mentioned processes is the input for the risk register framework.

[[File:Screenshot 2021-02-25 221935.png‎|center|thumb|310px|Figure 1: Implementation steps of Risk Register (own figure, based on <ref name="Pmi" />,<ref name="ot" /> and <ref name="PRINCE"/>) ]]

Risk register has the form of a table where each column represents different characteristics of the potential risks.<ref name="latvia"> Project Risk Register Analysis Based on the Theoretical Analysis of Project Management Notion of Risk, Juris Uzulāns, University of Latvia, 2016 Retrieved from: https://content.sciendo.com/configurable/contentpage/journals$002feb$002f29$002f1$002farticle-p43.xml </ref> In order to start building the risk register the first step is the identification of the risks. Once the potential threats are known it is vital to provide a brief description for each one. <ref name="Pmi" /> This helps the project managers not only to clarify the risks but also to understand why they are threatening the project’s success. Secondly, for the assessment of the risks, their probability and impact on the project are examined. Furthermore, in'' ‘Practice Standard for Project Risk Management’'' it is stated that the evaluation of the risk is depending on their impact and their frequency to happen.<ref name="Pmi" /> For instance, the risks that have high impact and probability to occur, are risks with higher importance than the risks with low frequency and impact. The identification of the risks’ importance is an essential element for project managers to know which risks are needed more attention and time for setting up a plan in order to overcome them. <ref name="Pmi" /> Furthermore, based on the ''‘PMBOK guide’'' the risk register also includes information about the person who must tackle every risk and the actions that he has to take to eliminate its negative consequences. <ref name="ot" /> Finally, the risks should be monitored in order to prevent unexpected events. <ref name="Pmi" /> The above elements are demanding high attention as they are mainly focused on dominant areas of the risk management process which are the identification of the threats, the evaluation of their importance, the course of action that should be taken to respond and control them. Figure 2 illustrates the risk register table based on the discussion above.

[[File:table1111.png‎|center|thumb|600px|Figure 2: Risk Register table (own figure, based on the discussion above)]]

==How Risk register is used ? ==
In order to have an in-depth understanding of the risk register, it is of utmost importance to analyse the way that it can be used. The tool aims to eliminate the negative impacts of the various threats by identifying, assessing, evaluating, and monitoring them. The following sections provide a guidance on how the four processes of risk register can be implemented.
=== 1. How to identify the risks ===
As a first step, the risks have to be identified by using the right techniques. Once this is complete, a short description of the risks that have been identified through the risk management process is provided.

''' 1.1 Risk identification '''

As it is quoted in ''‘Practice Standard for Project Risk Management’'', ''‘’ A risk cannot be managed unless it is first identified.’’'' <ref name="Pmi" /> (p.25) The identified risks are the first information that will be used in the risk register. <ref name="Pmi" /> <ref name="ot" /> It is worth noting that the risk identification process is continuous because as time passes, the number of information increases. In other words, new risks will become knowable by repeating the risk identification process in different phases of a project. <ref name="Pmi" />

In this article, three methods are used for the risk identification process and all of them are following the ''‘Practice Standard for Project Risk Management’'' <ref name="Pmi" /> (p.28):

*'''''Historical review''''': This technique is used as an analysis of events that happened in the past. When this method is used it is vital to make sure that the events that are under observation are correlated with risks that happened before in this project or in different projects from the same or different company. This method demands attention as there is the risk to compare data and risks from projects that are not closely connected to the project.
* '''''Current Assessment''''': In this method, the risk identification process is focused on analysing the project’s uncertainty based on the information that is known in this specific period of time.
*''''' Creativity Techniques''''': This approach is based on the creativity of the people who participate in the project. To be more specific, stakeholders have the chance to work individually or with other people in order to identify risks by using creative methods and thinking outside of the box.

All of the techniques mentioned above have both strong points and limitations. This means that if they are used separately, they might lead to inadequate results. Thus, the combination of the three techniques can guarantee more accurate results. <ref name="Pmi" /> (p.28)

''' 1.2 Risk description'''

The description of the identified risks is a very important component of the risk identification process. It is a way to make sure that the risks are well communicated and understood among all the stakeholders. <ref name="ppp"> Guide to Using a Risk Register, Stephanie Ray, https://www.projectmanager.com/blog/guide-using-risk-register Accessed on 19/02/2020 </ref> For instance, in a construction problem, it is identified that a potential risk could be a shock in the economy. A potential explanation is that a shock in the economy could increase the price of raw materials and as a result the project might exceed the agreed budget. As it could be observed, the description of this risk could give a better insight into what this change might impact.

=== 2. How to assess the risks ===
The assessment of the various risks could be applied by using two methods, namely, the qualitative and quantitative risk analysis. Both methods are used to evaluate risks’ importance to the project. This includes an analysis of the probability that each risk has to occur and the impact that they might have on the project. <ref name="Pmi" /> In this article, the assessment of the identified risks is following the ''‘’ Practice Standard for Project Risk Management‘’ '' and the''‘’ PMBOK guide ‘’ ''.

* '''Qualitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

In qualitative risk analysis, the risks are evaluated and ranked based on their probability, impact, and some other characteristics that have been defined before the implementation of the analysis. This analysis is implemented regularly as new threats might need to be identified. The basic components of qualitative risk analysis are the high or low probability of a risk to happen and the consequences that it might have in ''‘’ one or more project objectives such as schedule, cost, quality, or performance.’’'' <ref name="ot" /> (p.423) Additionally, in qualitative risk analysis the risks can be grouped based on various criteria. For example, they can be grouped by risks that might exceed projects’ deadlines. This way, the project management team could monitor the risks in a more effective way since not only they will know the project areas they need to pay more attention to, but they will also have a quicker response managing the threats of the several categories.

* '''Quantitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

The quantitative risk analysis is used to calculate risks’ effects on the project. While this numerical analysis is not considered vital for all the projects, it provides more pragmatistic results. The implementation of the quantitative risk analysis follows on from the qualitative risk analysis. This could be explained by the fact that in the qualitative risk analysis the risks are already prioritized and thus the most vital threats are recognized and could be calculated. The impact and the probability are calculated, and the risk register table can be updated with numerical results.

=== 3. How to respond to the risks ===

It is of utmost importance to tackle the identified risks once they have been assessed. In order to do so, it is necessary to perform a risk management plan which will include the actions for dealing with the risks and the person who is responsible to tackle them. As a first step the risks should be known by all the stakeholders. Every potential risk is assigned to the right people. These people are called risk owners and they are responsible with controlling and finding solutions for the risks they are assigned with. The risks could harm the project in various ways and for this reason, there should be a plan with responses for all of them.<ref name="Pmi" /> <ref name="ot" /> In the ''‘Practice Standard for Project Risk Management’'' it is written that ''’’ the planning entails agreeing upon the actions to be taken and the potential changes to the budget, schedule, resources, and scope which these actions might cause.’’'' <ref name="Pmi" /> (p.43) Furthermore, the actions that have to be taken for every risk should be developed at the very early stage of its identification. In other words, it is integral to have the strategies and responses in advance so that project’s time schedule will change as little as possible. <ref name="Pmi" /> The risk register includes all the responses and actions on its table. Once new risks are identified risk register is updated with new strategies that the risk owner has to follow. Moreover, throughout the lifecycle of a project, it is possible to make adjustments and corrections to the plans of the previously identified risks. <ref name="ppp" />

=== 4. How to monitor the risks ===

Risk monitoring is the last process that needs to be implemented in order to fill in the risk register table. This final step is as important as the three steps mentioned above. Risk should be monitored throughout the life cycle of a project. It is a continuous process that includes the actions that have to be taken in order to control not only the risks that already have been identified but also the new threats that have to be tamed. <ref name="Pmi" />. <ref name="ot" /> Additionally, risk monitoring is used to certify that all the risk responses are taken place when there is a need for action. This is a way to appraise the effectiveness of the responses and the risk owner in the risk management process. <ref name="Pmi" /> The process starts by checking the risk register table. The table should include the appropriate responses for every risk, otherwise, it has to be updated with the new actions that have to be taken.<ref name="Pmi" /> Moreover, it is important for the new actions and changes to be well communicated to the stakeholders and to the people responsible for that specific risks. The number of information varies at the different stages of a project. More information is available to the project managers as the project continues its processes, which means that changes can be made in the risk register. These changes will be defined during the monitoring process and will be updated and documented in the risk register by providing new information for the actions that have to be changed. <ref name="Pmi" />

In this article, three techniques are analyzed for controlling the risks. These techniques are analyzed in the ''‘PMBOK guide ’'' <ref name="ot" /> (p.456-457) :

* '''Data analysis''': This technique is used to ensure that the reserves of the project are enough to not threaten its budget and the deadlines. <ref name="ot" /> More specifically, this analysis is checking if the reserves that a project has as a backup is enough to ensure that it will have the resources to manage an unexpected event that will make its budget and time exceed the agreed limits. <ref name="Pmi" />

* '''Audits''': This method applied in order to evaluate the performance of the processes included in the risk management and hence they are recorded in the risk register. It is worth noting that this way of monitoring risks can be conducted during project meetings when the project team examines the risks. <ref name="ot" />

* '''Meetings''': During meetings, the project management team can evaluate the various risks. This is a vital process that examines the overall process of risk management planning. More specifically, the meeting can ensure that all the stakeholders have a clear overview of the risks that need to be tackled. Furthermore, it is possible that some of the identified risks happened in the past, and through the meeting, the project management team can communicate the learning outcomes and mistakes that they should avoid in the future. <ref name="ot" />

After these processes, the risk register framework is updated with the new data in order to assist the project management team with the risk management process.

==Reflections==
While many positive outcomes can arise from the use of the risk register framework, there are also some limitations that are worth mentioning. In this section, the advantages and limitations of the risk register framework are discussed.
=== Advantages ===
The risk register is used to document information about the various risks that have been identified not only at the very early stages but also throughout the whole lifecycle of the project. This is an extremely beneficial characteristic of the tool that can be used for the assessment of a project's performance as well as for the strategic and decision-making processes that are related to risk management. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> More specifically, as the project is developing, the amount of gathered information is growing which means that new risks will be identified to threaten the project's success. The risk register table is storing the information from the risks that already have been identified and evaluated, and once new treats have been found, the table is expanded with the new data. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> This could be vital for the overall success of the project since the new risk could be well communicated among the stakeholders and thus they will be informed for the new actions they have to take in order to eliminate the negative impact of the threats. Additionally, the table includes information that is the output of the qualitative risk analysis. In other words, in the qualitative analysis, it is examined how possible is for a risk to take place and the impact that it will have on the project. This analysis is used to prioritize the risks based on their importance. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> Once the risks are ranked, the stakeholders are informed of the threats that they have to pay more attention to. This means that they might have to spend more time planning a strategy around these risks as they will have a higher impact. Finally, the risk register is an advantageous tool for complex projects. When a project is very complex, it's important to use tools that could break down the planning processes. Risk register, due to its structure, provides the needed information for every risk from the moment it is identified. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref>

=== Limitations ===
The identified risks are listed based on the critical way of thinking of the people who are associated with the risk evaluation. This could be a limitation since the results on the risk register table might reflect the personal opinion of the people who implemented it and not the reality.<ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref> <ref name="fd"> Why risk registers don't do enough to help you manage risks, https://www.civilsociety.co.uk/finance/why-risk-registers-don-t-do-enough-to-help-you-manage-risks.html, Accessed on 22/02/2020 </ref> Moreover, the development of the risk register table requires a lot of time in order to insert the data from the four processes. Apart from that since the table is updated when changes are made either to the list of the identified risks or to the actions that have to be taken, it is possible that mistakes might occur when the new data are imported. Hence, the implementation of the documented results of the risk register seeks attention in order to avoid mistakes. However, the risk register is more than important when it comes to analysing the risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> This means that even though it is a time-consuming process, the outcomes of the tool can prevent threats that otherwise could have a negative impact on the project.

It is worth noting, that ignoring the limitations of the risk management tool could have a negative impact on the project. Nevertheless, it is a very important tool that should be applied in the risk management processes most or all of the time.

==Annotated bibliography==
* '' "Practice standard for project risk management." Project Management Institute, 2009.''
This book is based on the PMBOK Guide– Fourth Edition. It is a book about the risk management processes that a project has to follow. It analyses the techniques for the identification, assessment, responding, and controlling of the risks. In this book, the reader can find information for the risk register model and how it is involved in all the previously mentioned processes. Although the book provides many details of how to manage risks, it does not illustrate the risk register table. For this reason, the visualization of the table in this article is based on the theoretical outcomes of the book and not on the graphical illustrations included in it.

* ''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017)''
This book is focused on how to manage projects based on PRINCE2 principles. It describes the activities that a project needs based on its implementation stage. Risks analysis is also explained in one of the chapters of the book. In this book, the various stages of the risk management process are explained by providing the needing theory and figures. The design of figure 1 of the article is inspired by one of the illustrations of the book. However, the risk register model is also not illustrated in one of the pages of the book and that could be considered as a negative point.

* ''Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017)''
The book A guide to the Project Management Body of Knowledge provides detailed information on how to manage projects. The risk register framework is analyzed in the chapters of the book by providing information on the usage of the tool in the various processes of risk management. This book is a very useful guide for project management planning. It provides many details for the implementation and organization of projects.

==References==
<references/>

Risk Register analysis

2021-02-28T20:14:03Z

Dorothea Georgiadou: /* 1. How to identify the risks */

Developed by Dorothea Georgiadou

In an age where the economic, social, and political environment is constantly shifting, there is an urgent need to study the risks that may threaten the success of a project. It is particularly important to study the risks that may adversely affect the project and lead to events that might have as a consequence the exceeding of the agreed budget and time. For this reason, the risk management planning should identify and describe in detail the potential risks by providing the needed information for the actions that should be done for eliminating their negative impact. The high uncertainty that exists in projects necessitates the use of a management tool that will control the risks. <ref name="Pmi"> Project Mangement Institute. "Practice standard for project risk management." Project Management Institute, 2009. </ref> In this article the risk management framework ‘’Risk register’’ is explained. The risk register is a tool that covers and studies many aspects of risk management processes. More specifically, the aim of this article is to explain how this tool can be used to document the outcomes of the risk management processes. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013, Retrieved from:https://www.researchgate.net/publication/263528336_Risk_register_developement_and_implementation_for_construction_projects </ref> The article provides a description of the tool along with the reasons that it should be used. It is a framework that aims to record the information from the processes related to the identification, assessment, responding, and monitoring of potential risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. Finally, the article analyzes along with the benefits also the limitations of this risk management tool.

== Why use risk register? ==
In an ever-changing environment, a projects’ success is associated with a high level of uncertainty. In the ‘Practice Standard for Project Risk Management’, risk management is an approach that plays a vital role in the strategic and decision-making processes since adjustments in the project management planning can be done after the identification of the projects’ challenges. The risk register framework is used to support the risk management process in order to eliminate the negative impact that the various threats might have on a project. Threats could come from the external and internal environment of the company. The external risks are associated with the economic, social, political, and technological environment, while the internal threats include risks that are related to human actions and estimations. <ref name="Pmi" /> <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. For example, it is possible for people to make wrong estimations because of inexperience and underestimation of some threats. This high level of uncertainty makes it increasingly necessary to use a model that assists the risk management process in a more effective way. <ref name="Pmi" /> <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>.
=== The role of Risk Register ===
In ''‘Practice Standard for Project Risk Management’'', the risk register is defined as the framework that is used in project risk management for the documentation of the identified risks. It records all the needed information that will be the steppingstone to overcome the risks that might menace projects' success. <ref name="Pmi" /> It is worth noting that based on ''‘PRINCE2’'', the risks are divided into threats and opportunities. Threats are the risks that could have negative consequences for the project, while opportunities could bring positive outcomes to the company. <ref name="PRINCE"> Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017) Retrieved from: https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=4863041</ref> The article is mainly focused on the documentation of the various threats in the risk register. The importance of the tool is highlighted in the fact that it can assist project managers with tackling potential threats and to have a better and clearer overview of the internal and external risks that might negatively affect the success of the project. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref> The aim of the risk register is to record information related to the identification, assessment, evaluation of importance, and managing of the potential risks. <ref name="Pmi" /> <ref name="PRINCE" /> More specifically, the uncertainty that exists in projects makes it necessary to use a model that provides various information for the events that could threaten the projects. <ref name="Pmi" />

In the ''‘PMBOK guide ’ ''it is outlined that the tool risk register can be used in different phases of a project. Firstly, it can be used at a very early stage of a project in order to provide information for the risks that might be a threat. Secondly, as the project continues, new threats are recorded and documented in the risk register. In other words, it is used to update the new risks and inform the risk owners how they should monitor the new threats. Finally, it documents all the risks that have been recorded after the completion of a project. <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>

=== Elements of Risk Register===

As can be seen in figure 1, the implementation of the risk register model follows four processes. Firstly, the risks have to be identified. Secondly, they have to be assessed based on their impact and probability. After risk assessment, it is important to define the actions that must be taken, in order to manage the risks. The final process of the risk register model follows, deals with the ways the risks can be monitored. <ref name="Pmi" /> <ref name="ot" /> <ref name="PRINCE"/> The outcome of the previously mentioned processes is the input for the risk register framework.

[[File:Screenshot 2021-02-25 221935.png‎|center|thumb|310px|Figure 1: Implementation steps of Risk Register (own figure, based on <ref name="Pmi" />,<ref name="ot" /> and <ref name="PRINCE"/>) ]]

Risk register has the form of a table where each column represents different characteristics of the potential risks.<ref name="latvia"> Project Risk Register Analysis Based on the Theoretical Analysis of Project Management Notion of Risk, Juris Uzulāns, University of Latvia, 2016 Retrieved from: https://content.sciendo.com/configurable/contentpage/journals$002feb$002f29$002f1$002farticle-p43.xml </ref> In order to start building the risk register the first step is the identification of the risks. Once the potential threats are known it is vital to provide a brief description for each one. <ref name="Pmi" /> This helps the project managers not only to clarify the risks but also to understand why they are threatening the project’s success. Secondly, for the assessment of the risks, their probability and impact on the project are examined. Furthermore, in'' ‘Practice Standard for Project Risk Management’'' it is stated that the evaluation of the risk is depending on their impact and their frequency to happen.<ref name="Pmi" /> For instance, the risks that have high impact and probability to occur, are risks with higher importance than the risks with low frequency and impact. The identification of the risks’ importance is an essential element for project managers to know which risks are needed more attention and time for setting up a plan in order to overcome them. <ref name="Pmi" /> Furthermore, based on the ''‘PMBOK guide’'' the risk register also includes information about the person who must tackle every risk and the actions that he has to take to eliminate its negative consequences. <ref name="ot" /> Finally, the risks should be monitored in order to prevent unexpected events. <ref name="Pmi" /> The above elements are demanding high attention as they are mainly focused on dominant areas of the risk management process which are the identification of the threats, the evaluation of their importance, the course of action that should be taken to respond and control them. Figure 2 illustrates the risk register table based on the discussion above.

[[File:table1111.png‎|center|thumb|600px|Figure 2: Risk Register table (own figure, based on the discussion above)]]

==How Risk register is used ? ==
In order to have an in-depth understanding of the risk register, it is of utmost importance to analyse the way that it can be used. The tool aims to eliminate the negative impacts of the various threats by identifying, assessing, evaluating, and monitoring them. The following sections provide a guidance on how the four processes of risk register can be implemented.
=== 1. How to identify the risks ===
As a first step, the risks have to be identified by using the right techniques. Once this is complete, a short description of the risks that have been identified through the risk management process is provided.

''' 1.1 Risk identification '''

As it is quoted in ''‘Practice Standard for Project Risk Management’'', ''‘’ A risk cannot be managed unless it is first identified.’’'' <ref name="Pmi" /> (p.25) The identified risks are the first information that will be used in the risk register. <ref name="Pmi" /> <ref name="ot" /> It is worth noting that the risk identification process is continuous because as time passes, the number of information increases. In other words, new risks will become knowable by repeating the risk identification process in different phases of a project. <ref name="Pmi" />

In this article, three methods are used for the risk identification process and all of them are following the ''‘Practice Standard for Project Risk Management’'' <ref name="Pmi" /> (p.28):

*'''''Historical review''''': This technique is used as an analysis of events that happened in the past. When this method is used it is vital to make sure that the events that are under observation are correlated with risks that happened before in this project or in different projects from the same or different company. This method demands attention as there is the risk to compare data and risks from projects that are not closely connected to the project.
* '''''Current Assessment''''': In this method, the risk identification process is focused on analysing the project’s uncertainty based on the information that is known in this specific period of time.
*''''' Creativity Techniques''''': This approach is based on the creativity of the people who participate in the project. To be more specific, stakeholders have the chance to work individually or with other people in order to identify risks by using creative methods and thinking outside of the box.

All of the techniques mentioned above have both strong points and limitations. This means that if they are used separately, they might lead to inadequate results. Thus, the combination of the three techniques can guarantee more accurate results. <ref name="Pmi" /> (p.28)

''' 1.2 Risk description'''

The description of the identified risks is a very important component of the risk identification process. It is a way to make sure that the risks are well communicated and understood among all the stakeholders. <ref name="ppp"> Guide to Using a Risk Register, Stephanie Ray, https://www.projectmanager.com/blog/guide-using-risk-register Accessed on 19/02/2020 </ref> For instance, in a construction problem, it is identified that a potential risk could be a shock in the economy. A potential explanation is that a shock in the economy could increase the price of raw materials and as a result the project might exceed the agreed budget. As it could be observed, the description of this risk could give a better insight into what this change might impact.

=== 2. How to assess the risks ===
The assessment of the various risks could be applied by using two methods, namely, the qualitative and quantitative risk analysis. Both methods are used to evaluate risks’ importance to the project. This includes an analysis of the probability that each risk has to occur and the impact that they might have on the project. <ref name="Pmi" /> In this article, the assessment of the identified risks is following the ''‘’ Practice Standard for Project Risk Management‘’ '' and the''‘’ PMBOK guide ‘’ ''.

* '''Qualitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

In qualitative risk analysis, the risks are evaluated and ranked based on their probability, impact, and some other characteristics that have been defined before the implementation of the analysis. This analysis is implemented regularly as new threats might need to be identified. The basic components of qualitative risk analysis are the high or low probability of a risk to happen and the consequences that it might have in ''‘’ one or more project objectives such as schedule, cost, quality, or performance.’’'' <ref name="ot" /> (p.423) Additionally, in qualitative risk analysis the risks can be grouped based on various criteria. For example, they can be grouped by risks that might exceed projects’ deadlines. This way, the project management team could monitor the risks in a more effective way since not only they will know the project areas they need to pay more attention to, but they will also have a quicker response managing the threats of the several categories.

* '''Quantitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

The quantitative risk analysis is used to calculate risks’ effects on the project. While this numerical analysis is not considered vital for all the projects, it provides more pragmatistic results. The implementation of the quantitative risk analysis follows on from the qualitative risk analysis. This could be explained by the fact that in the qualitative risk analysis the risks are already prioritized and thus the most vital threats are recognized and could be calculated. The impact and the probability are calculated, and the risk register table can be updated with numerical results.

=== 3. How to respond to the risks ===

It is of utmost importance to tackle the identified risks once they have been assessed. In order to do so, it is necessary to perform a risk management plan which will include the actions for dealing with the risks and the person who is responsible to tackle them. As a first step the risks should be known by all the stakeholders. Every potential risk is assigned to the right people. These people are called risk owners and they are responsible with controlling and finding solutions for the risks they are assigned with. The risks could harm the project in various ways and for this reason, there should be a plan with responses for all of them.<ref name="Pmi" /> In the ''‘Practice Standard for Project Risk Management’'' it is written that ''’’ the planning entails agreeing upon the actions to be taken and the potential changes to the budget, schedule, resources, and scope which these actions might cause.’’'' <ref name="Pmi" /> (p.43) Furthermore, the actions that have to be taken for every risk should be developed at the very early stage of its identification. In other words, it is integral to have the strategies and responses in advance so that project’s time schedule will change as little as possible. <ref name="Pmi" /> The risk register includes all the responses and actions on its table. Once new risks are identified risk register is updated with new strategies that the risk owner has to follow. Moreover, throughout the lifecycle of a project, it is possible to make adjustments and corrections to the plans of the previously identified risks. <ref name="ppp" />

=== 4. How to monitor the risks ===

Risk monitoring is the last process that needs to be implemented in order to fill in the risk register table. This final step is as important as the three steps mentioned above. Risk should be monitored throughout the life cycle of a project. It is a continuous process that includes the actions that have to be taken in order to control not only the risks that already have been identified but also the new threats that have to be tamed. <ref name="Pmi" />. <ref name="ot" /> Additionally, risk monitoring is used to certify that all the risk responses are taken place when there is a need for action. This is a way to appraise the effectiveness of the responses and the risk owner in the risk management process. <ref name="Pmi" /> The process starts by checking the risk register table. The table should include the appropriate responses for every risk, otherwise, it has to be updated with the new actions that have to be taken.<ref name="Pmi" /> Moreover, it is important for the new actions and changes to be well communicated to the stakeholders and to the people responsible for that specific risks. The number of information varies at the different stages of a project. More information is available to the project managers as the project continues its processes, which means that changes can be made in the risk register. These changes will be defined during the monitoring process and will be updated and documented in the risk register by providing new information for the actions that have to be changed. <ref name="Pmi" />

In this article, three techniques are analyzed for controlling the risks. These techniques are analyzed in the ''‘PMBOK guide ’'' <ref name="ot" /> (p.456-457) :

* '''Data analysis''': This technique is used to ensure that the reserves of the project are enough to not threaten its budget and the deadlines. <ref name="ot" /> More specifically, this analysis is checking if the reserves that a project has as a backup is enough to ensure that it will have the resources to manage an unexpected event that will make its budget and time exceed the agreed limits. <ref name="Pmi" />

* '''Audits''': This method applied in order to evaluate the performance of the processes included in the risk management and hence they are recorded in the risk register. It is worth noting that this way of monitoring risks can be conducted during project meetings when the project team examines the risks. <ref name="ot" />

* '''Meetings''': During meetings, the project management team can evaluate the various risks. This is a vital process that examines the overall process of risk management planning. More specifically, the meeting can ensure that all the stakeholders have a clear overview of the risks that need to be tackled. Furthermore, it is possible that some of the identified risks happened in the past, and through the meeting, the project management team can communicate the learning outcomes and mistakes that they should avoid in the future. <ref name="ot" />

After these processes, the risk register framework is updated with the new data in order to assist the project management team with the risk management process.

==Reflections==
While many positive outcomes can arise from the use of the risk register framework, there are also some limitations that are worth mentioning. In this section, the advantages and limitations of the risk register framework are discussed.
=== Advantages ===
The risk register is used to document information about the various risks that have been identified not only at the very early stages but also throughout the whole lifecycle of the project. This is an extremely beneficial characteristic of the tool that can be used for the assessment of a project's performance as well as for the strategic and decision-making processes that are related to risk management. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> More specifically, as the project is developing, the amount of gathered information is growing which means that new risks will be identified to threaten the project's success. The risk register table is storing the information from the risks that already have been identified and evaluated, and once new treats have been found, the table is expanded with the new data. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> This could be vital for the overall success of the project since the new risk could be well communicated among the stakeholders and thus they will be informed for the new actions they have to take in order to eliminate the negative impact of the threats. Additionally, the table includes information that is the output of the qualitative risk analysis. In other words, in the qualitative analysis, it is examined how possible is for a risk to take place and the impact that it will have on the project. This analysis is used to prioritize the risks based on their importance. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> Once the risks are ranked, the stakeholders are informed of the threats that they have to pay more attention to. This means that they might have to spend more time planning a strategy around these risks as they will have a higher impact. Finally, the risk register is an advantageous tool for complex projects. When a project is very complex, it's important to use tools that could break down the planning processes. Risk register, due to its structure, provides the needed information for every risk from the moment it is identified. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref>

=== Limitations ===
The identified risks are listed based on the critical way of thinking of the people who are associated with the risk evaluation. This could be a limitation since the results on the risk register table might reflect the personal opinion of the people who implemented it and not the reality.<ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref> <ref name="fd"> Why risk registers don't do enough to help you manage risks, https://www.civilsociety.co.uk/finance/why-risk-registers-don-t-do-enough-to-help-you-manage-risks.html, Accessed on 22/02/2020 </ref> Moreover, the development of the risk register table requires a lot of time in order to insert the data from the four processes. Apart from that since the table is updated when changes are made either to the list of the identified risks or to the actions that have to be taken, it is possible that mistakes might occur when the new data are imported. Hence, the implementation of the documented results of the risk register seeks attention in order to avoid mistakes. However, the risk register is more than important when it comes to analysing the risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> This means that even though it is a time-consuming process, the outcomes of the tool can prevent threats that otherwise could have a negative impact on the project.

It is worth noting, that ignoring the limitations of the risk management tool could have a negative impact on the project. Nevertheless, it is a very important tool that should be applied in the risk management processes most or all of the time.

==Annotated bibliography==
* '' "Practice standard for project risk management." Project Management Institute, 2009.''
This book is based on the PMBOK Guide– Fourth Edition. It is a book about the risk management processes that a project has to follow. It analyses the techniques for the identification, assessment, responding, and controlling of the risks. In this book, the reader can find information for the risk register model and how it is involved in all the previously mentioned processes. Although the book provides many details of how to manage risks, it does not illustrate the risk register table. For this reason, the visualization of the table in this article is based on the theoretical outcomes of the book and not on the graphical illustrations included in it.

* ''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017)''
This book is focused on how to manage projects based on PRINCE2 principles. It describes the activities that a project needs based on its implementation stage. Risks analysis is also explained in one of the chapters of the book. In this book, the various stages of the risk management process are explained by providing the needing theory and figures. The design of figure 1 of the article is inspired by one of the illustrations of the book. However, the risk register model is also not illustrated in one of the pages of the book and that could be considered as a negative point.

* ''Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017)''
The book A guide to the Project Management Body of Knowledge provides detailed information on how to manage projects. The risk register framework is analyzed in the chapters of the book by providing information on the usage of the tool in the various processes of risk management. This book is a very useful guide for project management planning. It provides many details for the implementation and organization of projects.

==References==
<references/>

Risk Register analysis

2021-02-28T20:12:24Z

Dorothea Georgiadou: /* Elements of Risk Register */

Developed by Dorothea Georgiadou

In an age where the economic, social, and political environment is constantly shifting, there is an urgent need to study the risks that may threaten the success of a project. It is particularly important to study the risks that may adversely affect the project and lead to events that might have as a consequence the exceeding of the agreed budget and time. For this reason, the risk management planning should identify and describe in detail the potential risks by providing the needed information for the actions that should be done for eliminating their negative impact. The high uncertainty that exists in projects necessitates the use of a management tool that will control the risks. <ref name="Pmi"> Project Mangement Institute. "Practice standard for project risk management." Project Management Institute, 2009. </ref> In this article the risk management framework ‘’Risk register’’ is explained. The risk register is a tool that covers and studies many aspects of risk management processes. More specifically, the aim of this article is to explain how this tool can be used to document the outcomes of the risk management processes. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013, Retrieved from:https://www.researchgate.net/publication/263528336_Risk_register_developement_and_implementation_for_construction_projects </ref> The article provides a description of the tool along with the reasons that it should be used. It is a framework that aims to record the information from the processes related to the identification, assessment, responding, and monitoring of potential risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. Finally, the article analyzes along with the benefits also the limitations of this risk management tool.

== Why use risk register? ==
In an ever-changing environment, a projects’ success is associated with a high level of uncertainty. In the ‘Practice Standard for Project Risk Management’, risk management is an approach that plays a vital role in the strategic and decision-making processes since adjustments in the project management planning can be done after the identification of the projects’ challenges. The risk register framework is used to support the risk management process in order to eliminate the negative impact that the various threats might have on a project. Threats could come from the external and internal environment of the company. The external risks are associated with the economic, social, political, and technological environment, while the internal threats include risks that are related to human actions and estimations. <ref name="Pmi" /> <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. For example, it is possible for people to make wrong estimations because of inexperience and underestimation of some threats. This high level of uncertainty makes it increasingly necessary to use a model that assists the risk management process in a more effective way. <ref name="Pmi" /> <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>.
=== The role of Risk Register ===
In ''‘Practice Standard for Project Risk Management’'', the risk register is defined as the framework that is used in project risk management for the documentation of the identified risks. It records all the needed information that will be the steppingstone to overcome the risks that might menace projects' success. <ref name="Pmi" /> It is worth noting that based on ''‘PRINCE2’'', the risks are divided into threats and opportunities. Threats are the risks that could have negative consequences for the project, while opportunities could bring positive outcomes to the company. <ref name="PRINCE"> Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017) Retrieved from: https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=4863041</ref> The article is mainly focused on the documentation of the various threats in the risk register. The importance of the tool is highlighted in the fact that it can assist project managers with tackling potential threats and to have a better and clearer overview of the internal and external risks that might negatively affect the success of the project. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref> The aim of the risk register is to record information related to the identification, assessment, evaluation of importance, and managing of the potential risks. <ref name="Pmi" /> <ref name="PRINCE" /> More specifically, the uncertainty that exists in projects makes it necessary to use a model that provides various information for the events that could threaten the projects. <ref name="Pmi" />

In the ''‘PMBOK guide ’ ''it is outlined that the tool risk register can be used in different phases of a project. Firstly, it can be used at a very early stage of a project in order to provide information for the risks that might be a threat. Secondly, as the project continues, new threats are recorded and documented in the risk register. In other words, it is used to update the new risks and inform the risk owners how they should monitor the new threats. Finally, it documents all the risks that have been recorded after the completion of a project. <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>

=== Elements of Risk Register===

As can be seen in figure 1, the implementation of the risk register model follows four processes. Firstly, the risks have to be identified. Secondly, they have to be assessed based on their impact and probability. After risk assessment, it is important to define the actions that must be taken, in order to manage the risks. The final process of the risk register model follows, deals with the ways the risks can be monitored. <ref name="Pmi" /> <ref name="ot" /> <ref name="PRINCE"/> The outcome of the previously mentioned processes is the input for the risk register framework.

[[File:Screenshot 2021-02-25 221935.png‎|center|thumb|310px|Figure 1: Implementation steps of Risk Register (own figure, based on <ref name="Pmi" />,<ref name="ot" /> and <ref name="PRINCE"/>) ]]

Risk register has the form of a table where each column represents different characteristics of the potential risks.<ref name="latvia"> Project Risk Register Analysis Based on the Theoretical Analysis of Project Management Notion of Risk, Juris Uzulāns, University of Latvia, 2016 Retrieved from: https://content.sciendo.com/configurable/contentpage/journals$002feb$002f29$002f1$002farticle-p43.xml </ref> In order to start building the risk register the first step is the identification of the risks. Once the potential threats are known it is vital to provide a brief description for each one. <ref name="Pmi" /> This helps the project managers not only to clarify the risks but also to understand why they are threatening the project’s success. Secondly, for the assessment of the risks, their probability and impact on the project are examined. Furthermore, in'' ‘Practice Standard for Project Risk Management’'' it is stated that the evaluation of the risk is depending on their impact and their frequency to happen.<ref name="Pmi" /> For instance, the risks that have high impact and probability to occur, are risks with higher importance than the risks with low frequency and impact. The identification of the risks’ importance is an essential element for project managers to know which risks are needed more attention and time for setting up a plan in order to overcome them. <ref name="Pmi" /> Furthermore, based on the ''‘PMBOK guide’'' the risk register also includes information about the person who must tackle every risk and the actions that he has to take to eliminate its negative consequences. <ref name="ot" /> Finally, the risks should be monitored in order to prevent unexpected events. <ref name="Pmi" /> The above elements are demanding high attention as they are mainly focused on dominant areas of the risk management process which are the identification of the threats, the evaluation of their importance, the course of action that should be taken to respond and control them. Figure 2 illustrates the risk register table based on the discussion above.

[[File:table1111.png‎|center|thumb|600px|Figure 2: Risk Register table (own figure, based on the discussion above)]]

==How Risk register is used ? ==
In order to have an in-depth understanding of the risk register, it is of utmost importance to analyse the way that it can be used. The tool aims to eliminate the negative impacts of the various threats by identifying, assessing, evaluating, and monitoring them. The following sections provide a guidance on how the four processes of risk register can be implemented.
=== 1. How to identify the risks ===
As a first step, the risks have to be identified by using the right techniques. Once this is complete, a short description of the risks that have been identified through the risk management process is provided.

''' 1.1 Risk identification '''

As it is quoted in ''‘Practice Standard for Project Risk Management’'', ''‘’ A risk cannot be managed unless it is first identified.’’'' <ref name="Pmi" /> (p.25) The identified risks are the first information that will be used in the risk register. <ref name="Pmi" /> <ref name="ot" /> It is worth noting that the risk identification process is continuous because as time passes, the number of information increases. In other words, new risks will become knowable by repeating the risk identification process in different phases of a project. <ref name="Pmi" />

In this article, three methods are used for the risk identification process and all of them are following the ''‘Practice Standard for Project Risk Management’'' <ref name="Pmi" /> (p.28):

*'''''Historical review''''': This technique is used as an analysis of events that happened in the past. When this method, is used it is vital to make sure that the events that are under observation are correlated with risks that happened before in this project or in different projects from the same or different company. This method demands attention as there is the risk to compare data and risks from projects that are not closely connected to the project.
* '''''Current Assessment''''': In this method, the risk identification process is focused on analysing the project’s uncertainty based on the information that is known in this specific period of time.
*''''' Creativity Techniques''''': This approach is based on the creativity of the people who participate in the project. To be more specific, stakeholders have the chance to work individually or with other people in order to identify risks by using creative methods and thinking outside of the box.

All of the techniques mentioned above have both strong points and limitations. This means that if they are used separately, they might lead to inadequate results. Thus, the combination of the three techniques can guarantee more accurate results. <ref name="Pmi" /> (p.28)

''' 1.2 Risk description'''

The description of the identified risks is a very important component of the risk identification process. It is a way to make sure that the risks are well communicated and understood among all the stakeholders. <ref name="ppp"> Guide to Using a Risk Register, Stephanie Ray, https://www.projectmanager.com/blog/guide-using-risk-register Accessed on 19/02/2020 </ref> For instance, in a construction problem, it is identified that a potential risk could be a shock in the economy. A potential explanation is that a shock in the economy could increase the price of raw materials and as a result the project might exceed the agreed budget. As it could be observed, the description of this risk could give a better insight into what this change might impact.

=== 2. How to assess the risks ===
The assessment of the various risks could be applied by using two methods, namely, the qualitative and quantitative risk analysis. Both methods are used to evaluate risks’ importance to the project. This includes an analysis of the probability that each risk has to occur and the impact that they might have on the project. <ref name="Pmi" /> In this article, the assessment of the identified risks is following the ''‘’ Practice Standard for Project Risk Management‘’ '' and the''‘’ PMBOK guide ‘’ ''.

* '''Qualitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

In qualitative risk analysis, the risks are evaluated and ranked based on their probability, impact, and some other characteristics that have been defined before the implementation of the analysis. This analysis is implemented regularly as new threats might need to be identified. The basic components of qualitative risk analysis are the high or low probability of a risk to happen and the consequences that it might have in ''‘’ one or more project objectives such as schedule, cost, quality, or performance.’’'' <ref name="ot" /> (p.423) Additionally, in qualitative risk analysis the risks can be grouped based on various criteria. For example, they can be grouped by risks that might exceed projects’ deadlines. This way, the project management team could monitor the risks in a more effective way since not only they will know the project areas they need to pay more attention to, but they will also have a quicker response managing the threats of the several categories.

* '''Quantitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

The quantitative risk analysis is used to calculate risks’ effects on the project. While this numerical analysis is not considered vital for all the projects, it provides more pragmatistic results. The implementation of the quantitative risk analysis follows on from the qualitative risk analysis. This could be explained by the fact that in the qualitative risk analysis the risks are already prioritized and thus the most vital threats are recognized and could be calculated. The impact and the probability are calculated, and the risk register table can be updated with numerical results.

=== 3. How to respond to the risks ===

It is of utmost importance to tackle the identified risks once they have been assessed. In order to do so, it is necessary to perform a risk management plan which will include the actions for dealing with the risks and the person who is responsible to tackle them. As a first step the risks should be known by all the stakeholders. Every potential risk is assigned to the right people. These people are called risk owners and they are responsible with controlling and finding solutions for the risks they are assigned with. The risks could harm the project in various ways and for this reason, there should be a plan with responses for all of them.<ref name="Pmi" /> In the ''‘Practice Standard for Project Risk Management’'' it is written that ''’’ the planning entails agreeing upon the actions to be taken and the potential changes to the budget, schedule, resources, and scope which these actions might cause.’’'' <ref name="Pmi" /> (p.43) Furthermore, the actions that have to be taken for every risk should be developed at the very early stage of its identification. In other words, it is integral to have the strategies and responses in advance so that project’s time schedule will change as little as possible. <ref name="Pmi" /> The risk register includes all the responses and actions on its table. Once new risks are identified risk register is updated with new strategies that the risk owner has to follow. Moreover, throughout the lifecycle of a project, it is possible to make adjustments and corrections to the plans of the previously identified risks. <ref name="ppp" />

=== 4. How to monitor the risks ===

Risk monitoring is the last process that needs to be implemented in order to fill in the risk register table. This final step is as important as the three steps mentioned above. Risk should be monitored throughout the life cycle of a project. It is a continuous process that includes the actions that have to be taken in order to control not only the risks that already have been identified but also the new threats that have to be tamed. <ref name="Pmi" />. <ref name="ot" /> Additionally, risk monitoring is used to certify that all the risk responses are taken place when there is a need for action. This is a way to appraise the effectiveness of the responses and the risk owner in the risk management process. <ref name="Pmi" /> The process starts by checking the risk register table. The table should include the appropriate responses for every risk, otherwise, it has to be updated with the new actions that have to be taken.<ref name="Pmi" /> Moreover, it is important for the new actions and changes to be well communicated to the stakeholders and to the people responsible for that specific risks. The number of information varies at the different stages of a project. More information is available to the project managers as the project continues its processes, which means that changes can be made in the risk register. These changes will be defined during the monitoring process and will be updated and documented in the risk register by providing new information for the actions that have to be changed. <ref name="Pmi" />

In this article, three techniques are analyzed for controlling the risks. These techniques are analyzed in the ''‘PMBOK guide ’'' <ref name="ot" /> (p.456-457) :

* '''Data analysis''': This technique is used to ensure that the reserves of the project are enough to not threaten its budget and the deadlines. <ref name="ot" /> More specifically, this analysis is checking if the reserves that a project has as a backup is enough to ensure that it will have the resources to manage an unexpected event that will make its budget and time exceed the agreed limits. <ref name="Pmi" />

* '''Audits''': This method applied in order to evaluate the performance of the processes included in the risk management and hence they are recorded in the risk register. It is worth noting that this way of monitoring risks can be conducted during project meetings when the project team examines the risks. <ref name="ot" />

* '''Meetings''': During meetings, the project management team can evaluate the various risks. This is a vital process that examines the overall process of risk management planning. More specifically, the meeting can ensure that all the stakeholders have a clear overview of the risks that need to be tackled. Furthermore, it is possible that some of the identified risks happened in the past, and through the meeting, the project management team can communicate the learning outcomes and mistakes that they should avoid in the future. <ref name="ot" />

After these processes, the risk register framework is updated with the new data in order to assist the project management team with the risk management process.

==Reflections==
While many positive outcomes can arise from the use of the risk register framework, there are also some limitations that are worth mentioning. In this section, the advantages and limitations of the risk register framework are discussed.
=== Advantages ===
The risk register is used to document information about the various risks that have been identified not only at the very early stages but also throughout the whole lifecycle of the project. This is an extremely beneficial characteristic of the tool that can be used for the assessment of a project's performance as well as for the strategic and decision-making processes that are related to risk management. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> More specifically, as the project is developing, the amount of gathered information is growing which means that new risks will be identified to threaten the project's success. The risk register table is storing the information from the risks that already have been identified and evaluated, and once new treats have been found, the table is expanded with the new data. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> This could be vital for the overall success of the project since the new risk could be well communicated among the stakeholders and thus they will be informed for the new actions they have to take in order to eliminate the negative impact of the threats. Additionally, the table includes information that is the output of the qualitative risk analysis. In other words, in the qualitative analysis, it is examined how possible is for a risk to take place and the impact that it will have on the project. This analysis is used to prioritize the risks based on their importance. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> Once the risks are ranked, the stakeholders are informed of the threats that they have to pay more attention to. This means that they might have to spend more time planning a strategy around these risks as they will have a higher impact. Finally, the risk register is an advantageous tool for complex projects. When a project is very complex, it's important to use tools that could break down the planning processes. Risk register, due to its structure, provides the needed information for every risk from the moment it is identified. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref>

=== Limitations ===
The identified risks are listed based on the critical way of thinking of the people who are associated with the risk evaluation. This could be a limitation since the results on the risk register table might reflect the personal opinion of the people who implemented it and not the reality.<ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref> <ref name="fd"> Why risk registers don't do enough to help you manage risks, https://www.civilsociety.co.uk/finance/why-risk-registers-don-t-do-enough-to-help-you-manage-risks.html, Accessed on 22/02/2020 </ref> Moreover, the development of the risk register table requires a lot of time in order to insert the data from the four processes. Apart from that since the table is updated when changes are made either to the list of the identified risks or to the actions that have to be taken, it is possible that mistakes might occur when the new data are imported. Hence, the implementation of the documented results of the risk register seeks attention in order to avoid mistakes. However, the risk register is more than important when it comes to analysing the risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> This means that even though it is a time-consuming process, the outcomes of the tool can prevent threats that otherwise could have a negative impact on the project.

It is worth noting, that ignoring the limitations of the risk management tool could have a negative impact on the project. Nevertheless, it is a very important tool that should be applied in the risk management processes most or all of the time.

==Annotated bibliography==
* '' "Practice standard for project risk management." Project Management Institute, 2009.''
This book is based on the PMBOK Guide– Fourth Edition. It is a book about the risk management processes that a project has to follow. It analyses the techniques for the identification, assessment, responding, and controlling of the risks. In this book, the reader can find information for the risk register model and how it is involved in all the previously mentioned processes. Although the book provides many details of how to manage risks, it does not illustrate the risk register table. For this reason, the visualization of the table in this article is based on the theoretical outcomes of the book and not on the graphical illustrations included in it.

* ''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017)''
This book is focused on how to manage projects based on PRINCE2 principles. It describes the activities that a project needs based on its implementation stage. Risks analysis is also explained in one of the chapters of the book. In this book, the various stages of the risk management process are explained by providing the needing theory and figures. The design of figure 1 of the article is inspired by one of the illustrations of the book. However, the risk register model is also not illustrated in one of the pages of the book and that could be considered as a negative point.

* ''Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017)''
The book A guide to the Project Management Body of Knowledge provides detailed information on how to manage projects. The risk register framework is analyzed in the chapters of the book by providing information on the usage of the tool in the various processes of risk management. This book is a very useful guide for project management planning. It provides many details for the implementation and organization of projects.

==References==
<references/>

Risk Register analysis

2021-02-28T19:55:33Z

Dorothea Georgiadou: /* The role of Risk Register */

Developed by Dorothea Georgiadou

In an age where the economic, social, and political environment is constantly shifting, there is an urgent need to study the risks that may threaten the success of a project. It is particularly important to study the risks that may adversely affect the project and lead to events that might have as a consequence the exceeding of the agreed budget and time. For this reason, the risk management planning should identify and describe in detail the potential risks by providing the needed information for the actions that should be done for eliminating their negative impact. The high uncertainty that exists in projects necessitates the use of a management tool that will control the risks. <ref name="Pmi"> Project Mangement Institute. "Practice standard for project risk management." Project Management Institute, 2009. </ref> In this article the risk management framework ‘’Risk register’’ is explained. The risk register is a tool that covers and studies many aspects of risk management processes. More specifically, the aim of this article is to explain how this tool can be used to document the outcomes of the risk management processes. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013, Retrieved from:https://www.researchgate.net/publication/263528336_Risk_register_developement_and_implementation_for_construction_projects </ref> The article provides a description of the tool along with the reasons that it should be used. It is a framework that aims to record the information from the processes related to the identification, assessment, responding, and monitoring of potential risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. Finally, the article analyzes along with the benefits also the limitations of this risk management tool.

== Why use risk register? ==
In an ever-changing environment, a projects’ success is associated with a high level of uncertainty. In the ‘Practice Standard for Project Risk Management’, risk management is an approach that plays a vital role in the strategic and decision-making processes since adjustments in the project management planning can be done after the identification of the projects’ challenges. The risk register framework is used to support the risk management process in order to eliminate the negative impact that the various threats might have on a project. Threats could come from the external and internal environment of the company. The external risks are associated with the economic, social, political, and technological environment, while the internal threats include risks that are related to human actions and estimations. <ref name="Pmi" /> <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. For example, it is possible for people to make wrong estimations because of inexperience and underestimation of some threats. This high level of uncertainty makes it increasingly necessary to use a model that assists the risk management process in a more effective way. <ref name="Pmi" /> <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>.
=== The role of Risk Register ===
In ''‘Practice Standard for Project Risk Management’'', the risk register is defined as the framework that is used in project risk management for the documentation of the identified risks. It records all the needed information that will be the steppingstone to overcome the risks that might menace projects' success. <ref name="Pmi" /> It is worth noting that based on ''‘PRINCE2’'', the risks are divided into threats and opportunities. Threats are the risks that could have negative consequences for the project, while opportunities could bring positive outcomes to the company. <ref name="PRINCE"> Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017) Retrieved from: https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=4863041</ref> The article is mainly focused on the documentation of the various threats in the risk register. The importance of the tool is highlighted in the fact that it can assist project managers with tackling potential threats and to have a better and clearer overview of the internal and external risks that might negatively affect the success of the project. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref> The aim of the risk register is to record information related to the identification, assessment, evaluation of importance, and managing of the potential risks. <ref name="Pmi" /> <ref name="PRINCE" /> More specifically, the uncertainty that exists in projects makes it necessary to use a model that provides various information for the events that could threaten the projects. <ref name="Pmi" />

In the ''‘PMBOK guide ’ ''it is outlined that the tool risk register can be used in different phases of a project. Firstly, it can be used at a very early stage of a project in order to provide information for the risks that might be a threat. Secondly, as the project continues, new threats are recorded and documented in the risk register. In other words, it is used to update the new risks and inform the risk owners how they should monitor the new threats. Finally, it documents all the risks that have been recorded after the completion of a project. <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>

=== Elements of Risk Register===

As can be seen in figure 1, the implementation of the risk register model follows four processes. Firstly, the risks have to be identified. Secondly, they have to be assessed based on their impact and probability. After risk assessment, it is important to define the actions that must be taken, in order to manage the risks. The final process of the risk register model follows, deals with the ways the risks can be monitored. <ref name="Pmi" /> <ref name="ot" /> <ref name="PRINCE"/> The outcome of the previously mentioned processes is the input for the risk register framework.

[[File:Screenshot 2021-02-25 221935.png‎|center|thumb|310px|Figure 1: Implementation steps of Risk Register (own figure, based on <ref name="Pmi" />,<ref name="ot" /> and <ref name="PRINCE"/>) ]]

Risk register has the form of a table where each column represents different characteristics of the potential risks.<ref name="latvia"> Project Risk Register Analysis Based on the Theoretical Analysis of Project Management Notion of Risk, Juris Uzulāns, University of Latvia, 2016 Retrieved from: https://content.sciendo.com/configurable/contentpage/journals$002feb$002f29$002f1$002farticle-p43.xml </ref> In order to start building the risk register the first step is the identification of the risks. Once the potential threats are known it is vital to provide a brief description for each one. <ref name="Pmi" /> This helps the project managers not only to clarify the risks but also to understand why they are threatening the project’s success. Secondly, for the assessment of the risks, their probability and impact on the project are examined. Furthermore, in'' ‘Practice Standard for Project Risk Management’'' it is stated that the evaluation of the risk is depending on their impact and their frequency to happen.<ref name="Pmi" /> For instance, the risks that have high impact and probability to occur, are risks with higher importance than the risks with low frequency and impact. The identification of the risks’ importance is an essential element for project managers to know which risks are needed more attention and time for setting up a plan in order to overcome them. <ref name="Pmi" /> Furthermore, based on the ''‘PMBOK guide’'' the risk register also includes information about the person who must tackle every risk and the actions that he has to take to eliminate its negative consequences. <ref name="ot" /> Finally, the risks should be monitored in order to prevent unexpected events. <ref name="Pmi" /> The above elements are demanding high attention as they are mainly focused on dominant areas of the risk management process which are the identification of the threats, the evaluation of their importance, and the course of action that should be taken. Figure 2 illustrates the risk register table based on the discussion above.

[[File:table1111.png‎|center|thumb|600px|Figure 2: Risk Register table (own figure, based on the discussion above)]]

==How Risk register is used ? ==
In order to have an in-depth understanding of the risk register, it is of utmost importance to analyse the way that it can be used. The tool aims to eliminate the negative impacts of the various threats by identifying, assessing, evaluating, and monitoring them. The following sections provide a guidance on how the four processes of risk register can be implemented.
=== 1. How to identify the risks ===
As a first step, the risks have to be identified by using the right techniques. Once this is complete, a short description of the risks that have been identified through the risk management process is provided.

''' 1.1 Risk identification '''

As it is quoted in ''‘Practice Standard for Project Risk Management’'', ''‘’ A risk cannot be managed unless it is first identified.’’'' <ref name="Pmi" /> (p.25) The identified risks are the first information that will be used in the risk register. <ref name="Pmi" /> <ref name="ot" /> It is worth noting that the risk identification process is continuous because as time passes, the number of information increases. In other words, new risks will become knowable by repeating the risk identification process in different phases of a project. <ref name="Pmi" />

In this article, three methods are used for the risk identification process and all of them are following the ''‘Practice Standard for Project Risk Management’'' <ref name="Pmi" /> (p.28):

*'''''Historical review''''': This technique is used as an analysis of events that happened in the past. When this method, is used it is vital to make sure that the events that are under observation are correlated with risks that happened before in this project or in different projects from the same or different company. This method demands attention as there is the risk to compare data and risks from projects that are not closely connected to the project.
* '''''Current Assessment''''': In this method, the risk identification process is focused on analysing the project’s uncertainty based on the information that is known in this specific period of time.
*''''' Creativity Techniques''''': This approach is based on the creativity of the people who participate in the project. To be more specific, stakeholders have the chance to work individually or with other people in order to identify risks by using creative methods and thinking outside of the box.

All of the techniques mentioned above have both strong points and limitations. This means that if they are used separately, they might lead to inadequate results. Thus, the combination of the three techniques can guarantee more accurate results. <ref name="Pmi" /> (p.28)

''' 1.2 Risk description'''

The description of the identified risks is a very important component of the risk identification process. It is a way to make sure that the risks are well communicated and understood among all the stakeholders. <ref name="ppp"> Guide to Using a Risk Register, Stephanie Ray, https://www.projectmanager.com/blog/guide-using-risk-register Accessed on 19/02/2020 </ref> For instance, in a construction problem, it is identified that a potential risk could be a shock in the economy. A potential explanation is that a shock in the economy could increase the price of raw materials and as a result the project might exceed the agreed budget. As it could be observed, the description of this risk could give a better insight into what this change might impact.

=== 2. How to assess the risks ===
The assessment of the various risks could be applied by using two methods, namely, the qualitative and quantitative risk analysis. Both methods are used to evaluate risks’ importance to the project. This includes an analysis of the probability that each risk has to occur and the impact that they might have on the project. <ref name="Pmi" /> In this article, the assessment of the identified risks is following the ''‘’ Practice Standard for Project Risk Management‘’ '' and the''‘’ PMBOK guide ‘’ ''.

* '''Qualitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

In qualitative risk analysis, the risks are evaluated and ranked based on their probability, impact, and some other characteristics that have been defined before the implementation of the analysis. This analysis is implemented regularly as new threats might need to be identified. The basic components of qualitative risk analysis are the high or low probability of a risk to happen and the consequences that it might have in ''‘’ one or more project objectives such as schedule, cost, quality, or performance.’’'' <ref name="ot" /> (p.423) Additionally, in qualitative risk analysis the risks can be grouped based on various criteria. For example, they can be grouped by risks that might exceed projects’ deadlines. This way, the project management team could monitor the risks in a more effective way since not only they will know the project areas they need to pay more attention to, but they will also have a quicker response managing the threats of the several categories.

* '''Quantitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

The quantitative risk analysis is used to calculate risks’ effects on the project. While this numerical analysis is not considered vital for all the projects, it provides more pragmatistic results. The implementation of the quantitative risk analysis follows on from the qualitative risk analysis. This could be explained by the fact that in the qualitative risk analysis the risks are already prioritized and thus the most vital threats are recognized and could be calculated. The impact and the probability are calculated, and the risk register table can be updated with numerical results.

=== 3. How to respond to the risks ===

It is of utmost importance to tackle the identified risks once they have been assessed. In order to do so, it is necessary to perform a risk management plan which will include the actions for dealing with the risks and the person who is responsible to tackle them. As a first step the risks should be known by all the stakeholders. Every potential risk is assigned to the right people. These people are called risk owners and they are responsible with controlling and finding solutions for the risks they are assigned with. The risks could harm the project in various ways and for this reason, there should be a plan with responses for all of them.<ref name="Pmi" /> In the ''‘Practice Standard for Project Risk Management’'' it is written that ''’’ the planning entails agreeing upon the actions to be taken and the potential changes to the budget, schedule, resources, and scope which these actions might cause.’’'' <ref name="Pmi" /> (p.43) Furthermore, the actions that have to be taken for every risk should be developed at the very early stage of its identification. In other words, it is integral to have the strategies and responses in advance so that project’s time schedule will change as little as possible. <ref name="Pmi" /> The risk register includes all the responses and actions on its table. Once new risks are identified risk register is updated with new strategies that the risk owner has to follow. Moreover, throughout the lifecycle of a project, it is possible to make adjustments and corrections to the plans of the previously identified risks. <ref name="ppp" />

=== 4. How to monitor the risks ===

Risk monitoring is the last process that needs to be implemented in order to fill in the risk register table. This final step is as important as the three steps mentioned above. Risk should be monitored throughout the life cycle of a project. It is a continuous process that includes the actions that have to be taken in order to control not only the risks that already have been identified but also the new threats that have to be tamed. <ref name="Pmi" />. <ref name="ot" /> Additionally, risk monitoring is used to certify that all the risk responses are taken place when there is a need for action. This is a way to appraise the effectiveness of the responses and the risk owner in the risk management process. <ref name="Pmi" /> The process starts by checking the risk register table. The table should include the appropriate responses for every risk, otherwise, it has to be updated with the new actions that have to be taken.<ref name="Pmi" /> Moreover, it is important for the new actions and changes to be well communicated to the stakeholders and to the people responsible for that specific risks. The number of information varies at the different stages of a project. More information is available to the project managers as the project continues its processes, which means that changes can be made in the risk register. These changes will be defined during the monitoring process and will be updated and documented in the risk register by providing new information for the actions that have to be changed. <ref name="Pmi" />

In this article, three techniques are analyzed for controlling the risks. These techniques are analyzed in the ''‘PMBOK guide ’'' <ref name="ot" /> (p.456-457) :

* '''Data analysis''': This technique is used to ensure that the reserves of the project are enough to not threaten its budget and the deadlines. <ref name="ot" /> More specifically, this analysis is checking if the reserves that a project has as a backup is enough to ensure that it will have the resources to manage an unexpected event that will make its budget and time exceed the agreed limits. <ref name="Pmi" />

* '''Audits''': This method applied in order to evaluate the performance of the processes included in the risk management and hence they are recorded in the risk register. It is worth noting that this way of monitoring risks can be conducted during project meetings when the project team examines the risks. <ref name="ot" />

* '''Meetings''': During meetings, the project management team can evaluate the various risks. This is a vital process that examines the overall process of risk management planning. More specifically, the meeting can ensure that all the stakeholders have a clear overview of the risks that need to be tackled. Furthermore, it is possible that some of the identified risks happened in the past, and through the meeting, the project management team can communicate the learning outcomes and mistakes that they should avoid in the future. <ref name="ot" />

After these processes, the risk register framework is updated with the new data in order to assist the project management team with the risk management process.

==Reflections==
While many positive outcomes can arise from the use of the risk register framework, there are also some limitations that are worth mentioning. In this section, the advantages and limitations of the risk register framework are discussed.
=== Advantages ===
The risk register is used to document information about the various risks that have been identified not only at the very early stages but also throughout the whole lifecycle of the project. This is an extremely beneficial characteristic of the tool that can be used for the assessment of a project's performance as well as for the strategic and decision-making processes that are related to risk management. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> More specifically, as the project is developing, the amount of gathered information is growing which means that new risks will be identified to threaten the project's success. The risk register table is storing the information from the risks that already have been identified and evaluated, and once new treats have been found, the table is expanded with the new data. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> This could be vital for the overall success of the project since the new risk could be well communicated among the stakeholders and thus they will be informed for the new actions they have to take in order to eliminate the negative impact of the threats. Additionally, the table includes information that is the output of the qualitative risk analysis. In other words, in the qualitative analysis, it is examined how possible is for a risk to take place and the impact that it will have on the project. This analysis is used to prioritize the risks based on their importance. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> Once the risks are ranked, the stakeholders are informed of the threats that they have to pay more attention to. This means that they might have to spend more time planning a strategy around these risks as they will have a higher impact. Finally, the risk register is an advantageous tool for complex projects. When a project is very complex, it's important to use tools that could break down the planning processes. Risk register, due to its structure, provides the needed information for every risk from the moment it is identified. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref>

=== Limitations ===
The identified risks are listed based on the critical way of thinking of the people who are associated with the risk evaluation. This could be a limitation since the results on the risk register table might reflect the personal opinion of the people who implemented it and not the reality.<ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref> <ref name="fd"> Why risk registers don't do enough to help you manage risks, https://www.civilsociety.co.uk/finance/why-risk-registers-don-t-do-enough-to-help-you-manage-risks.html, Accessed on 22/02/2020 </ref> Moreover, the development of the risk register table requires a lot of time in order to insert the data from the four processes. Apart from that since the table is updated when changes are made either to the list of the identified risks or to the actions that have to be taken, it is possible that mistakes might occur when the new data are imported. Hence, the implementation of the documented results of the risk register seeks attention in order to avoid mistakes. However, the risk register is more than important when it comes to analysing the risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> This means that even though it is a time-consuming process, the outcomes of the tool can prevent threats that otherwise could have a negative impact on the project.

It is worth noting, that ignoring the limitations of the risk management tool could have a negative impact on the project. Nevertheless, it is a very important tool that should be applied in the risk management processes most or all of the time.

==Annotated bibliography==
* '' "Practice standard for project risk management." Project Management Institute, 2009.''
This book is based on the PMBOK Guide– Fourth Edition. It is a book about the risk management processes that a project has to follow. It analyses the techniques for the identification, assessment, responding, and controlling of the risks. In this book, the reader can find information for the risk register model and how it is involved in all the previously mentioned processes. Although the book provides many details of how to manage risks, it does not illustrate the risk register table. For this reason, the visualization of the table in this article is based on the theoretical outcomes of the book and not on the graphical illustrations included in it.

* ''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017)''
This book is focused on how to manage projects based on PRINCE2 principles. It describes the activities that a project needs based on its implementation stage. Risks analysis is also explained in one of the chapters of the book. In this book, the various stages of the risk management process are explained by providing the needing theory and figures. The design of figure 1 of the article is inspired by one of the illustrations of the book. However, the risk register model is also not illustrated in one of the pages of the book and that could be considered as a negative point.

* ''Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017)''
The book A guide to the Project Management Body of Knowledge provides detailed information on how to manage projects. The risk register framework is analyzed in the chapters of the book by providing information on the usage of the tool in the various processes of risk management. This book is a very useful guide for project management planning. It provides many details for the implementation and organization of projects.

==References==
<references/>

Risk Register analysis

2021-02-28T19:41:56Z

Dorothea Georgiadou: /* Why use risk register? */

Developed by Dorothea Georgiadou

In an age where the economic, social, and political environment is constantly shifting, there is an urgent need to study the risks that may threaten the success of a project. It is particularly important to study the risks that may adversely affect the project and lead to events that might have as a consequence the exceeding of the agreed budget and time. For this reason, the risk management planning should identify and describe in detail the potential risks by providing the needed information for the actions that should be done for eliminating their negative impact. The high uncertainty that exists in projects necessitates the use of a management tool that will control the risks. <ref name="Pmi"> Project Mangement Institute. "Practice standard for project risk management." Project Management Institute, 2009. </ref> In this article the risk management framework ‘’Risk register’’ is explained. The risk register is a tool that covers and studies many aspects of risk management processes. More specifically, the aim of this article is to explain how this tool can be used to document the outcomes of the risk management processes. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013, Retrieved from:https://www.researchgate.net/publication/263528336_Risk_register_developement_and_implementation_for_construction_projects </ref> The article provides a description of the tool along with the reasons that it should be used. It is a framework that aims to record the information from the processes related to the identification, assessment, responding, and monitoring of potential risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. Finally, the article analyzes along with the benefits also the limitations of this risk management tool.

== Why use risk register? ==
In an ever-changing environment, a projects’ success is associated with a high level of uncertainty. In the ‘Practice Standard for Project Risk Management’, risk management is an approach that plays a vital role in the strategic and decision-making processes since adjustments in the project management planning can be done after the identification of the projects’ challenges. The risk register framework is used to support the risk management process in order to eliminate the negative impact that the various threats might have on a project. Threats could come from the external and internal environment of the company. The external risks are associated with the economic, social, political, and technological environment, while the internal threats include risks that are related to human actions and estimations. <ref name="Pmi" /> <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. For example, it is possible for people to make wrong estimations because of inexperience and underestimation of some threats. This high level of uncertainty makes it increasingly necessary to use a model that assists the risk management process in a more effective way. <ref name="Pmi" /> <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>.
=== The role of Risk Register ===
In ''‘Practice Standard for Project Risk Management’'', the risk register is defined as the framework that is used in project risk management for the documentation of the identified risks. <ref name="Pmi" /> It records all the needed information that will be the steppingstone to overcome the risks that might menace projects' success. <ref name="Pmi" /> It is worth noting that based on ''‘PRINCE2’'', the risks are divided into threats and opportunities. Threats are the risks that could have negative consequences for the project, while opportunities could bring positive outcomes to the company. <ref name="PRINCE"> Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017) Retrieved from: https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=4863041</ref> The article is mainly focused on the documentation of the various threats in the risk register. The importance of the tool is highlighted in the fact that it can assist project managers with tackling potential threats and to have a better and clearer overview of the internal and external risks that might negatively affect the success of the project. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref> The aim of the risk register is to record information related to the identification, assessment, evaluation of importance, and managing of the potential risks. <ref name="Pmi" /> <ref name="PRINCE" /> More specifically, the uncertainty that exists in projects makes it necessary to use a model that provides various information for the events that could threaten the projects. <ref name="Pmi" />

In the ''‘PMBOK guide ’ ''it is outlined that the tool risk register can be used in different phases of a project. Firstly, it can be used at a very early stage of a project in order to provide information for the risks that might be a threat. Secondly, as the project continues, new threats are recorded and documented in the risk register. In other words, it is used to update the new risks and inform the risk owners how they should monitor the new threats. Finally, it documents all the risks that have been recorded after the completion of a project. <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>

=== Elements of Risk Register===

As can be seen in figure 1, the implementation of the risk register model follows four processes. Firstly, the risks have to be identified. Secondly, they have to be assessed based on their impact and probability. After risk assessment, it is important to define the actions that must be taken, in order to manage the risks. The final process of the risk register model follows, deals with the ways the risks can be monitored. <ref name="Pmi" /> <ref name="ot" /> <ref name="PRINCE"/> The outcome of the previously mentioned processes is the input for the risk register framework.

[[File:Screenshot 2021-02-25 221935.png‎|center|thumb|310px|Figure 1: Implementation steps of Risk Register (own figure, based on <ref name="Pmi" />,<ref name="ot" /> and <ref name="PRINCE"/>) ]]

Risk register has the form of a table where each column represents different characteristics of the potential risks.<ref name="latvia"> Project Risk Register Analysis Based on the Theoretical Analysis of Project Management Notion of Risk, Juris Uzulāns, University of Latvia, 2016 Retrieved from: https://content.sciendo.com/configurable/contentpage/journals$002feb$002f29$002f1$002farticle-p43.xml </ref> In order to start building the risk register the first step is the identification of the risks. Once the potential threats are known it is vital to provide a brief description for each one. <ref name="Pmi" /> This helps the project managers not only to clarify the risks but also to understand why they are threatening the project’s success. Secondly, for the assessment of the risks, their probability and impact on the project are examined. Furthermore, in'' ‘Practice Standard for Project Risk Management’'' it is stated that the evaluation of the risk is depending on their impact and their frequency to happen.<ref name="Pmi" /> For instance, the risks that have high impact and probability to occur, are risks with higher importance than the risks with low frequency and impact. The identification of the risks’ importance is an essential element for project managers to know which risks are needed more attention and time for setting up a plan in order to overcome them. <ref name="Pmi" /> Furthermore, based on the ''‘PMBOK guide’'' the risk register also includes information about the person who must tackle every risk and the actions that he has to take to eliminate its negative consequences. <ref name="ot" /> Finally, the risks should be monitored in order to prevent unexpected events. <ref name="Pmi" /> The above elements are demanding high attention as they are mainly focused on dominant areas of the risk management process which are the identification of the threats, the evaluation of their importance, and the course of action that should be taken. Figure 2 illustrates the risk register table based on the discussion above.

[[File:table1111.png‎|center|thumb|600px|Figure 2: Risk Register table (own figure, based on the discussion above)]]

==How Risk register is used ? ==
In order to have an in-depth understanding of the risk register, it is of utmost importance to analyse the way that it can be used. The tool aims to eliminate the negative impacts of the various threats by identifying, assessing, evaluating, and monitoring them. The following sections provide a guidance on how the four processes of risk register can be implemented.
=== 1. How to identify the risks ===
As a first step, the risks have to be identified by using the right techniques. Once this is complete, a short description of the risks that have been identified through the risk management process is provided.

''' 1.1 Risk identification '''

As it is quoted in ''‘Practice Standard for Project Risk Management’'', ''‘’ A risk cannot be managed unless it is first identified.’’'' <ref name="Pmi" /> (p.25) The identified risks are the first information that will be used in the risk register. <ref name="Pmi" /> <ref name="ot" /> It is worth noting that the risk identification process is continuous because as time passes, the number of information increases. In other words, new risks will become knowable by repeating the risk identification process in different phases of a project. <ref name="Pmi" />

In this article, three methods are used for the risk identification process and all of them are following the ''‘Practice Standard for Project Risk Management’'' <ref name="Pmi" /> (p.28):

*'''''Historical review''''': This technique is used as an analysis of events that happened in the past. When this method, is used it is vital to make sure that the events that are under observation are correlated with risks that happened before in this project or in different projects from the same or different company. This method demands attention as there is the risk to compare data and risks from projects that are not closely connected to the project.
* '''''Current Assessment''''': In this method, the risk identification process is focused on analysing the project’s uncertainty based on the information that is known in this specific period of time.
*''''' Creativity Techniques''''': This approach is based on the creativity of the people who participate in the project. To be more specific, stakeholders have the chance to work individually or with other people in order to identify risks by using creative methods and thinking outside of the box.

All of the techniques mentioned above have both strong points and limitations. This means that if they are used separately, they might lead to inadequate results. Thus, the combination of the three techniques can guarantee more accurate results. <ref name="Pmi" /> (p.28)

''' 1.2 Risk description'''

The description of the identified risks is a very important component of the risk identification process. It is a way to make sure that the risks are well communicated and understood among all the stakeholders. <ref name="ppp"> Guide to Using a Risk Register, Stephanie Ray, https://www.projectmanager.com/blog/guide-using-risk-register Accessed on 19/02/2020 </ref> For instance, in a construction problem, it is identified that a potential risk could be a shock in the economy. A potential explanation is that a shock in the economy could increase the price of raw materials and as a result the project might exceed the agreed budget. As it could be observed, the description of this risk could give a better insight into what this change might impact.

=== 2. How to assess the risks ===
The assessment of the various risks could be applied by using two methods, namely, the qualitative and quantitative risk analysis. Both methods are used to evaluate risks’ importance to the project. This includes an analysis of the probability that each risk has to occur and the impact that they might have on the project. <ref name="Pmi" /> In this article, the assessment of the identified risks is following the ''‘’ Practice Standard for Project Risk Management‘’ '' and the''‘’ PMBOK guide ‘’ ''.

* '''Qualitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

In qualitative risk analysis, the risks are evaluated and ranked based on their probability, impact, and some other characteristics that have been defined before the implementation of the analysis. This analysis is implemented regularly as new threats might need to be identified. The basic components of qualitative risk analysis are the high or low probability of a risk to happen and the consequences that it might have in ''‘’ one or more project objectives such as schedule, cost, quality, or performance.’’'' <ref name="ot" /> (p.423) Additionally, in qualitative risk analysis the risks can be grouped based on various criteria. For example, they can be grouped by risks that might exceed projects’ deadlines. This way, the project management team could monitor the risks in a more effective way since not only they will know the project areas they need to pay more attention to, but they will also have a quicker response managing the threats of the several categories.

* '''Quantitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

The quantitative risk analysis is used to calculate risks’ effects on the project. While this numerical analysis is not considered vital for all the projects, it provides more pragmatistic results. The implementation of the quantitative risk analysis follows on from the qualitative risk analysis. This could be explained by the fact that in the qualitative risk analysis the risks are already prioritized and thus the most vital threats are recognized and could be calculated. The impact and the probability are calculated, and the risk register table can be updated with numerical results.

=== 3. How to respond to the risks ===

It is of utmost importance to tackle the identified risks once they have been assessed. In order to do so, it is necessary to perform a risk management plan which will include the actions for dealing with the risks and the person who is responsible to tackle them. As a first step the risks should be known by all the stakeholders. Every potential risk is assigned to the right people. These people are called risk owners and they are responsible with controlling and finding solutions for the risks they are assigned with. The risks could harm the project in various ways and for this reason, there should be a plan with responses for all of them.<ref name="Pmi" /> In the ''‘Practice Standard for Project Risk Management’'' it is written that ''’’ the planning entails agreeing upon the actions to be taken and the potential changes to the budget, schedule, resources, and scope which these actions might cause.’’'' <ref name="Pmi" /> (p.43) Furthermore, the actions that have to be taken for every risk should be developed at the very early stage of its identification. In other words, it is integral to have the strategies and responses in advance so that project’s time schedule will change as little as possible. <ref name="Pmi" /> The risk register includes all the responses and actions on its table. Once new risks are identified risk register is updated with new strategies that the risk owner has to follow. Moreover, throughout the lifecycle of a project, it is possible to make adjustments and corrections to the plans of the previously identified risks. <ref name="ppp" />

=== 4. How to monitor the risks ===

Risk monitoring is the last process that needs to be implemented in order to fill in the risk register table. This final step is as important as the three steps mentioned above. Risk should be monitored throughout the life cycle of a project. It is a continuous process that includes the actions that have to be taken in order to control not only the risks that already have been identified but also the new threats that have to be tamed. <ref name="Pmi" />. <ref name="ot" /> Additionally, risk monitoring is used to certify that all the risk responses are taken place when there is a need for action. This is a way to appraise the effectiveness of the responses and the risk owner in the risk management process. <ref name="Pmi" /> The process starts by checking the risk register table. The table should include the appropriate responses for every risk, otherwise, it has to be updated with the new actions that have to be taken.<ref name="Pmi" /> Moreover, it is important for the new actions and changes to be well communicated to the stakeholders and to the people responsible for that specific risks. The number of information varies at the different stages of a project. More information is available to the project managers as the project continues its processes, which means that changes can be made in the risk register. These changes will be defined during the monitoring process and will be updated and documented in the risk register by providing new information for the actions that have to be changed. <ref name="Pmi" />

In this article, three techniques are analyzed for controlling the risks. These techniques are analyzed in the ''‘PMBOK guide ’'' <ref name="ot" /> (p.456-457) :

* '''Data analysis''': This technique is used to ensure that the reserves of the project are enough to not threaten its budget and the deadlines. <ref name="ot" /> More specifically, this analysis is checking if the reserves that a project has as a backup is enough to ensure that it will have the resources to manage an unexpected event that will make its budget and time exceed the agreed limits. <ref name="Pmi" />

* '''Audits''': This method applied in order to evaluate the performance of the processes included in the risk management and hence they are recorded in the risk register. It is worth noting that this way of monitoring risks can be conducted during project meetings when the project team examines the risks. <ref name="ot" />

* '''Meetings''': During meetings, the project management team can evaluate the various risks. This is a vital process that examines the overall process of risk management planning. More specifically, the meeting can ensure that all the stakeholders have a clear overview of the risks that need to be tackled. Furthermore, it is possible that some of the identified risks happened in the past, and through the meeting, the project management team can communicate the learning outcomes and mistakes that they should avoid in the future. <ref name="ot" />

After these processes, the risk register framework is updated with the new data in order to assist the project management team with the risk management process.

==Reflections==
While many positive outcomes can arise from the use of the risk register framework, there are also some limitations that are worth mentioning. In this section, the advantages and limitations of the risk register framework are discussed.
=== Advantages ===
The risk register is used to document information about the various risks that have been identified not only at the very early stages but also throughout the whole lifecycle of the project. This is an extremely beneficial characteristic of the tool that can be used for the assessment of a project's performance as well as for the strategic and decision-making processes that are related to risk management. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> More specifically, as the project is developing, the amount of gathered information is growing which means that new risks will be identified to threaten the project's success. The risk register table is storing the information from the risks that already have been identified and evaluated, and once new treats have been found, the table is expanded with the new data. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> This could be vital for the overall success of the project since the new risk could be well communicated among the stakeholders and thus they will be informed for the new actions they have to take in order to eliminate the negative impact of the threats. Additionally, the table includes information that is the output of the qualitative risk analysis. In other words, in the qualitative analysis, it is examined how possible is for a risk to take place and the impact that it will have on the project. This analysis is used to prioritize the risks based on their importance. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> Once the risks are ranked, the stakeholders are informed of the threats that they have to pay more attention to. This means that they might have to spend more time planning a strategy around these risks as they will have a higher impact. Finally, the risk register is an advantageous tool for complex projects. When a project is very complex, it's important to use tools that could break down the planning processes. Risk register, due to its structure, provides the needed information for every risk from the moment it is identified. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref>

=== Limitations ===
The identified risks are listed based on the critical way of thinking of the people who are associated with the risk evaluation. This could be a limitation since the results on the risk register table might reflect the personal opinion of the people who implemented it and not the reality.<ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref> <ref name="fd"> Why risk registers don't do enough to help you manage risks, https://www.civilsociety.co.uk/finance/why-risk-registers-don-t-do-enough-to-help-you-manage-risks.html, Accessed on 22/02/2020 </ref> Moreover, the development of the risk register table requires a lot of time in order to insert the data from the four processes. Apart from that since the table is updated when changes are made either to the list of the identified risks or to the actions that have to be taken, it is possible that mistakes might occur when the new data are imported. Hence, the implementation of the documented results of the risk register seeks attention in order to avoid mistakes. However, the risk register is more than important when it comes to analysing the risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> This means that even though it is a time-consuming process, the outcomes of the tool can prevent threats that otherwise could have a negative impact on the project.

It is worth noting, that ignoring the limitations of the risk management tool could have a negative impact on the project. Nevertheless, it is a very important tool that should be applied in the risk management processes most or all of the time.

==Annotated bibliography==
* '' "Practice standard for project risk management." Project Management Institute, 2009.''
This book is based on the PMBOK Guide– Fourth Edition. It is a book about the risk management processes that a project has to follow. It analyses the techniques for the identification, assessment, responding, and controlling of the risks. In this book, the reader can find information for the risk register model and how it is involved in all the previously mentioned processes. Although the book provides many details of how to manage risks, it does not illustrate the risk register table. For this reason, the visualization of the table in this article is based on the theoretical outcomes of the book and not on the graphical illustrations included in it.

* ''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017)''
This book is focused on how to manage projects based on PRINCE2 principles. It describes the activities that a project needs based on its implementation stage. Risks analysis is also explained in one of the chapters of the book. In this book, the various stages of the risk management process are explained by providing the needing theory and figures. The design of figure 1 of the article is inspired by one of the illustrations of the book. However, the risk register model is also not illustrated in one of the pages of the book and that could be considered as a negative point.

* ''Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017)''
The book A guide to the Project Management Body of Knowledge provides detailed information on how to manage projects. The risk register framework is analyzed in the chapters of the book by providing information on the usage of the tool in the various processes of risk management. This book is a very useful guide for project management planning. It provides many details for the implementation and organization of projects.

==References==
<references/>

Risk Register analysis

2021-02-28T19:08:24Z

Dorothea Georgiadou: /* Elements of Risk Register */

Developed by Dorothea Georgiadou

In an age where the economic, social, and political environment is constantly shifting, there is an urgent need to study the risks that may threaten the success of a project. It is particularly important to study the risks that may adversely affect the project and lead to events that might have as a consequence the exceeding of the agreed budget and time. For this reason, the risk management planning should identify and describe in detail the potential risks by providing the needed information for the actions that should be done for eliminating their negative impact. The high uncertainty that exists in projects necessitates the use of a management tool that will control the risks. <ref name="Pmi"> Project Mangement Institute. "Practice standard for project risk management." Project Management Institute, 2009. </ref> In this article the risk management framework ‘’Risk register’’ is explained. The risk register is a tool that covers and studies many aspects of risk management processes. More specifically, the aim of this article is to explain how this tool can be used to document the outcomes of the risk management processes. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013, Retrieved from:https://www.researchgate.net/publication/263528336_Risk_register_developement_and_implementation_for_construction_projects </ref> The article provides a description of the tool along with the reasons that it should be used. It is a framework that aims to record the information from the processes related to the identification, assessment, responding, and monitoring of potential risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. Finally, the article analyzes along with the benefits also the limitations of this risk management tool.

== Why use risk register? ==
In an ever-changing environment, a projects’ success is associated with a high level of uncertainty. In the ‘Practice Standard for Project Risk Management’, risk management is an approach that plays a vital role in the strategic and decision-making processes since adjustments in the project management planning can be done after the identification of the projects’ challenges. The risk register framework is used to support the risk management process in order to eliminate the negative impact that the various threats might have on a project. Threats could come from the external and internal environment of the company. The external risks are associated with the economic, social, political, and technological environment, while the internal threats include risks that are related to human actions and estimations. For example, it is possible for people to make wrong estimations because of inexperience and underestimation of some threats. This high level of uncertainty makes it increasingly necessary to use a model that assists the risk management process in a more effective way. <ref name="Pmi" /> <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>.
=== The role of Risk Register ===
In ''‘Practice Standard for Project Risk Management’'', the risk register is defined as the framework that is used in project risk management for the documentation of the identified risks. <ref name="Pmi" /> It records all the needed information that will be the steppingstone to overcome the risks that might menace projects' success. <ref name="Pmi" /> It is worth noting that based on ''‘PRINCE2’'', the risks are divided into threats and opportunities. Threats are the risks that could have negative consequences for the project, while opportunities could bring positive outcomes to the company. <ref name="PRINCE"> Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017) Retrieved from: https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=4863041</ref> The article is mainly focused on the documentation of the various threats in the risk register. The importance of the tool is highlighted in the fact that it can assist project managers with tackling potential threats and to have a better and clearer overview of the internal and external risks that might negatively affect the success of the project. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref> The aim of the risk register is to record information related to the identification, assessment, evaluation of importance, and managing of the potential risks. <ref name="Pmi" /> <ref name="PRINCE" /> More specifically, the uncertainty that exists in projects makes it necessary to use a model that provides various information for the events that could threaten the projects. <ref name="Pmi" />

In the ''‘PMBOK guide ’ ''it is outlined that the tool risk register can be used in different phases of a project. Firstly, it can be used at a very early stage of a project in order to provide information for the risks that might be a threat. Secondly, as the project continues, new threats are recorded and documented in the risk register. In other words, it is used to update the new risks and inform the risk owners how they should monitor the new threats. Finally, it documents all the risks that have been recorded after the completion of a project. <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>

=== Elements of Risk Register===

As can be seen in figure 1, the implementation of the risk register model follows four processes. Firstly, the risks have to be identified. Secondly, they have to be assessed based on their impact and probability. After risk assessment, it is important to define the actions that must be taken, in order to manage the risks. The final process of the risk register model follows, deals with the ways the risks can be monitored. <ref name="Pmi" /> <ref name="ot" /> <ref name="PRINCE"/> The outcome of the previously mentioned processes is the input for the risk register framework.

[[File:Screenshot 2021-02-25 221935.png‎|center|thumb|310px|Figure 1: Implementation steps of Risk Register (own figure, based on <ref name="Pmi" />,<ref name="ot" /> and <ref name="PRINCE"/>) ]]

Risk register has the form of a table where each column represents different characteristics of the potential risks.<ref name="latvia"> Project Risk Register Analysis Based on the Theoretical Analysis of Project Management Notion of Risk, Juris Uzulāns, University of Latvia, 2016 Retrieved from: https://content.sciendo.com/configurable/contentpage/journals$002feb$002f29$002f1$002farticle-p43.xml </ref> In order to start building the risk register the first step is the identification of the risks. Once the potential threats are known it is vital to provide a brief description for each one. <ref name="Pmi" /> This helps the project managers not only to clarify the risks but also to understand why they are threatening the project’s success. Secondly, for the assessment of the risks, their probability and impact on the project are examined. Furthermore, in'' ‘Practice Standard for Project Risk Management’'' it is stated that the evaluation of the risk is depending on their impact and their frequency to happen.<ref name="Pmi" /> For instance, the risks that have high impact and probability to occur, are risks with higher importance than the risks with low frequency and impact. The identification of the risks’ importance is an essential element for project managers to know which risks are needed more attention and time for setting up a plan in order to overcome them. <ref name="Pmi" /> Furthermore, based on the ''‘PMBOK guide’'' the risk register also includes information about the person who must tackle every risk and the actions that he has to take to eliminate its negative consequences. <ref name="ot" /> Finally, the risks should be monitored in order to prevent unexpected events. <ref name="Pmi" /> The above elements are demanding high attention as they are mainly focused on dominant areas of the risk management process which are the identification of the threats, the evaluation of their importance, and the course of action that should be taken. Figure 2 illustrates the risk register table based on the discussion above.

[[File:table1111.png‎|center|thumb|600px|Figure 2: Risk Register table (own figure, based on the discussion above)]]

==How Risk register is used ? ==
In order to have an in-depth understanding of the risk register, it is of utmost importance to analyse the way that it can be used. The tool aims to eliminate the negative impacts of the various threats by identifying, assessing, evaluating, and monitoring them. The following sections provide a guidance on how the four processes of risk register can be implemented.
=== 1. How to identify the risks ===
As a first step, the risks have to be identified by using the right techniques. Once this is complete, a short description of the risks that have been identified through the risk management process is provided.

''' 1.1 Risk identification '''

As it is quoted in ''‘Practice Standard for Project Risk Management’'', ''‘’ A risk cannot be managed unless it is first identified.’’'' <ref name="Pmi" /> (p.25) The identified risks are the first information that will be used in the risk register. <ref name="Pmi" /> <ref name="ot" /> It is worth noting that the risk identification process is continuous because as time passes, the number of information increases. In other words, new risks will become knowable by repeating the risk identification process in different phases of a project. <ref name="Pmi" />

In this article, three methods are used for the risk identification process and all of them are following the ''‘Practice Standard for Project Risk Management’'' <ref name="Pmi" /> (p.28):

*'''''Historical review''''': This technique is used as an analysis of events that happened in the past. When this method, is used it is vital to make sure that the events that are under observation are correlated with risks that happened before in this project or in different projects from the same or different company. This method demands attention as there is the risk to compare data and risks from projects that are not closely connected to the project.
* '''''Current Assessment''''': In this method, the risk identification process is focused on analysing the project’s uncertainty based on the information that is known in this specific period of time.
*''''' Creativity Techniques''''': This approach is based on the creativity of the people who participate in the project. To be more specific, stakeholders have the chance to work individually or with other people in order to identify risks by using creative methods and thinking outside of the box.

All of the techniques mentioned above have both strong points and limitations. This means that if they are used separately, they might lead to inadequate results. Thus, the combination of the three techniques can guarantee more accurate results. <ref name="Pmi" /> (p.28)

''' 1.2 Risk description'''

The description of the identified risks is a very important component of the risk identification process. It is a way to make sure that the risks are well communicated and understood among all the stakeholders. <ref name="ppp"> Guide to Using a Risk Register, Stephanie Ray, https://www.projectmanager.com/blog/guide-using-risk-register Accessed on 19/02/2020 </ref> For instance, in a construction problem, it is identified that a potential risk could be a shock in the economy. A potential explanation is that a shock in the economy could increase the price of raw materials and as a result the project might exceed the agreed budget. As it could be observed, the description of this risk could give a better insight into what this change might impact.

=== 2. How to assess the risks ===
The assessment of the various risks could be applied by using two methods, namely, the qualitative and quantitative risk analysis. Both methods are used to evaluate risks’ importance to the project. This includes an analysis of the probability that each risk has to occur and the impact that they might have on the project. <ref name="Pmi" /> In this article, the assessment of the identified risks is following the ''‘’ Practice Standard for Project Risk Management‘’ '' and the''‘’ PMBOK guide ‘’ ''.

* '''Qualitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

In qualitative risk analysis, the risks are evaluated and ranked based on their probability, impact, and some other characteristics that have been defined before the implementation of the analysis. This analysis is implemented regularly as new threats might need to be identified. The basic components of qualitative risk analysis are the high or low probability of a risk to happen and the consequences that it might have in ''‘’ one or more project objectives such as schedule, cost, quality, or performance.’’'' <ref name="ot" /> (p.423) Additionally, in qualitative risk analysis the risks can be grouped based on various criteria. For example, they can be grouped by risks that might exceed projects’ deadlines. This way, the project management team could monitor the risks in a more effective way since not only they will know the project areas they need to pay more attention to, but they will also have a quicker response managing the threats of the several categories.

* '''Quantitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

The quantitative risk analysis is used to calculate risks’ effects on the project. While this numerical analysis is not considered vital for all the projects, it provides more pragmatistic results. The implementation of the quantitative risk analysis follows on from the qualitative risk analysis. This could be explained by the fact that in the qualitative risk analysis the risks are already prioritized and thus the most vital threats are recognized and could be calculated. The impact and the probability are calculated, and the risk register table can be updated with numerical results.

=== 3. How to respond to the risks ===

It is of utmost importance to tackle the identified risks once they have been assessed. In order to do so, it is necessary to perform a risk management plan which will include the actions for dealing with the risks and the person who is responsible to tackle them. As a first step the risks should be known by all the stakeholders. Every potential risk is assigned to the right people. These people are called risk owners and they are responsible with controlling and finding solutions for the risks they are assigned with. The risks could harm the project in various ways and for this reason, there should be a plan with responses for all of them.<ref name="Pmi" /> In the ''‘Practice Standard for Project Risk Management’'' it is written that ''’’ the planning entails agreeing upon the actions to be taken and the potential changes to the budget, schedule, resources, and scope which these actions might cause.’’'' <ref name="Pmi" /> (p.43) Furthermore, the actions that have to be taken for every risk should be developed at the very early stage of its identification. In other words, it is integral to have the strategies and responses in advance so that project’s time schedule will change as little as possible. <ref name="Pmi" /> The risk register includes all the responses and actions on its table. Once new risks are identified risk register is updated with new strategies that the risk owner has to follow. Moreover, throughout the lifecycle of a project, it is possible to make adjustments and corrections to the plans of the previously identified risks. <ref name="ppp" />

=== 4. How to monitor the risks ===

Risk monitoring is the last process that needs to be implemented in order to fill in the risk register table. This final step is as important as the three steps mentioned above. Risk should be monitored throughout the life cycle of a project. It is a continuous process that includes the actions that have to be taken in order to control not only the risks that already have been identified but also the new threats that have to be tamed. <ref name="Pmi" />. <ref name="ot" /> Additionally, risk monitoring is used to certify that all the risk responses are taken place when there is a need for action. This is a way to appraise the effectiveness of the responses and the risk owner in the risk management process. <ref name="Pmi" /> The process starts by checking the risk register table. The table should include the appropriate responses for every risk, otherwise, it has to be updated with the new actions that have to be taken.<ref name="Pmi" /> Moreover, it is important for the new actions and changes to be well communicated to the stakeholders and to the people responsible for that specific risks. The number of information varies at the different stages of a project. More information is available to the project managers as the project continues its processes, which means that changes can be made in the risk register. These changes will be defined during the monitoring process and will be updated and documented in the risk register by providing new information for the actions that have to be changed. <ref name="Pmi" />

In this article, three techniques are analyzed for controlling the risks. These techniques are analyzed in the ''‘PMBOK guide ’'' <ref name="ot" /> (p.456-457) :

* '''Data analysis''': This technique is used to ensure that the reserves of the project are enough to not threaten its budget and the deadlines. <ref name="ot" /> More specifically, this analysis is checking if the reserves that a project has as a backup is enough to ensure that it will have the resources to manage an unexpected event that will make its budget and time exceed the agreed limits. <ref name="Pmi" />

* '''Audits''': This method applied in order to evaluate the performance of the processes included in the risk management and hence they are recorded in the risk register. It is worth noting that this way of monitoring risks can be conducted during project meetings when the project team examines the risks. <ref name="ot" />

* '''Meetings''': During meetings, the project management team can evaluate the various risks. This is a vital process that examines the overall process of risk management planning. More specifically, the meeting can ensure that all the stakeholders have a clear overview of the risks that need to be tackled. Furthermore, it is possible that some of the identified risks happened in the past, and through the meeting, the project management team can communicate the learning outcomes and mistakes that they should avoid in the future. <ref name="ot" />

After these processes, the risk register framework is updated with the new data in order to assist the project management team with the risk management process.

==Reflections==
While many positive outcomes can arise from the use of the risk register framework, there are also some limitations that are worth mentioning. In this section, the advantages and limitations of the risk register framework are discussed.
=== Advantages ===
The risk register is used to document information about the various risks that have been identified not only at the very early stages but also throughout the whole lifecycle of the project. This is an extremely beneficial characteristic of the tool that can be used for the assessment of a project's performance as well as for the strategic and decision-making processes that are related to risk management. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> More specifically, as the project is developing, the amount of gathered information is growing which means that new risks will be identified to threaten the project's success. The risk register table is storing the information from the risks that already have been identified and evaluated, and once new treats have been found, the table is expanded with the new data. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> This could be vital for the overall success of the project since the new risk could be well communicated among the stakeholders and thus they will be informed for the new actions they have to take in order to eliminate the negative impact of the threats. Additionally, the table includes information that is the output of the qualitative risk analysis. In other words, in the qualitative analysis, it is examined how possible is for a risk to take place and the impact that it will have on the project. This analysis is used to prioritize the risks based on their importance. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> Once the risks are ranked, the stakeholders are informed of the threats that they have to pay more attention to. This means that they might have to spend more time planning a strategy around these risks as they will have a higher impact. Finally, the risk register is an advantageous tool for complex projects. When a project is very complex, it's important to use tools that could break down the planning processes. Risk register, due to its structure, provides the needed information for every risk from the moment it is identified. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref>

=== Limitations ===
The identified risks are listed based on the critical way of thinking of the people who are associated with the risk evaluation. This could be a limitation since the results on the risk register table might reflect the personal opinion of the people who implemented it and not the reality.<ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref> <ref name="fd"> Why risk registers don't do enough to help you manage risks, https://www.civilsociety.co.uk/finance/why-risk-registers-don-t-do-enough-to-help-you-manage-risks.html, Accessed on 22/02/2020 </ref> Moreover, the development of the risk register table requires a lot of time in order to insert the data from the four processes. Apart from that since the table is updated when changes are made either to the list of the identified risks or to the actions that have to be taken, it is possible that mistakes might occur when the new data are imported. Hence, the implementation of the documented results of the risk register seeks attention in order to avoid mistakes. However, the risk register is more than important when it comes to analysing the risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> This means that even though it is a time-consuming process, the outcomes of the tool can prevent threats that otherwise could have a negative impact on the project.

It is worth noting, that ignoring the limitations of the risk management tool could have a negative impact on the project. Nevertheless, it is a very important tool that should be applied in the risk management processes most or all of the time.

==Annotated bibliography==
* '' "Practice standard for project risk management." Project Management Institute, 2009.''
This book is based on the PMBOK Guide– Fourth Edition. It is a book about the risk management processes that a project has to follow. It analyses the techniques for the identification, assessment, responding, and controlling of the risks. In this book, the reader can find information for the risk register model and how it is involved in all the previously mentioned processes. Although the book provides many details of how to manage risks, it does not illustrate the risk register table. For this reason, the visualization of the table in this article is based on the theoretical outcomes of the book and not on the graphical illustrations included in it.

* ''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017)''
This book is focused on how to manage projects based on PRINCE2 principles. It describes the activities that a project needs based on its implementation stage. Risks analysis is also explained in one of the chapters of the book. In this book, the various stages of the risk management process are explained by providing the needing theory and figures. The design of figure 1 of the article is inspired by one of the illustrations of the book. However, the risk register model is also not illustrated in one of the pages of the book and that could be considered as a negative point.

* ''Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017)''
The book A guide to the Project Management Body of Knowledge provides detailed information on how to manage projects. The risk register framework is analyzed in the chapters of the book by providing information on the usage of the tool in the various processes of risk management. This book is a very useful guide for project management planning. It provides many details for the implementation and organization of projects.

==References==
<references/>

Risk Register analysis

2021-02-28T19:06:55Z

Dorothea Georgiadou: /* Elements of Risk Register */

Developed by Dorothea Georgiadou

In an age where the economic, social, and political environment is constantly shifting, there is an urgent need to study the risks that may threaten the success of a project. It is particularly important to study the risks that may adversely affect the project and lead to events that might have as a consequence the exceeding of the agreed budget and time. For this reason, the risk management planning should identify and describe in detail the potential risks by providing the needed information for the actions that should be done for eliminating their negative impact. The high uncertainty that exists in projects necessitates the use of a management tool that will control the risks. <ref name="Pmi"> Project Mangement Institute. "Practice standard for project risk management." Project Management Institute, 2009. </ref> In this article the risk management framework ‘’Risk register’’ is explained. The risk register is a tool that covers and studies many aspects of risk management processes. More specifically, the aim of this article is to explain how this tool can be used to document the outcomes of the risk management processes. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013, Retrieved from:https://www.researchgate.net/publication/263528336_Risk_register_developement_and_implementation_for_construction_projects </ref> The article provides a description of the tool along with the reasons that it should be used. It is a framework that aims to record the information from the processes related to the identification, assessment, responding, and monitoring of potential risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. Finally, the article analyzes along with the benefits also the limitations of this risk management tool.

== Why use risk register? ==
In an ever-changing environment, a projects’ success is associated with a high level of uncertainty. In the ‘Practice Standard for Project Risk Management’, risk management is an approach that plays a vital role in the strategic and decision-making processes since adjustments in the project management planning can be done after the identification of the projects’ challenges. The risk register framework is used to support the risk management process in order to eliminate the negative impact that the various threats might have on a project. Threats could come from the external and internal environment of the company. The external risks are associated with the economic, social, political, and technological environment, while the internal threats include risks that are related to human actions and estimations. For example, it is possible for people to make wrong estimations because of inexperience and underestimation of some threats. This high level of uncertainty makes it increasingly necessary to use a model that assists the risk management process in a more effective way. <ref name="Pmi" /> <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>.
=== The role of Risk Register ===
In ''‘Practice Standard for Project Risk Management’'', the risk register is defined as the framework that is used in project risk management for the documentation of the identified risks. <ref name="Pmi" /> It records all the needed information that will be the steppingstone to overcome the risks that might menace projects' success. <ref name="Pmi" /> It is worth noting that based on ''‘PRINCE2’'', the risks are divided into threats and opportunities. Threats are the risks that could have negative consequences for the project, while opportunities could bring positive outcomes to the company. <ref name="PRINCE"> Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017) Retrieved from: https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=4863041</ref> The article is mainly focused on the documentation of the various threats in the risk register. The importance of the tool is highlighted in the fact that it can assist project managers with tackling potential threats and to have a better and clearer overview of the internal and external risks that might negatively affect the success of the project. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref> The aim of the risk register is to record information related to the identification, assessment, evaluation of importance, and managing of the potential risks. <ref name="Pmi" /> <ref name="PRINCE" /> More specifically, the uncertainty that exists in projects makes it necessary to use a model that provides various information for the events that could threaten the projects. <ref name="Pmi" />

In the ''‘PMBOK guide ’ ''it is outlined that the tool risk register can be used in different phases of a project. Firstly, it can be used at a very early stage of a project in order to provide information for the risks that might be a threat. Secondly, as the project continues, new threats are recorded and documented in the risk register. In other words, it is used to update the new risks and inform the risk owners how they should monitor the new threats. Finally, it documents all the risks that have been recorded after the completion of a project. <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>

=== Elements of Risk Register===

As can be seen in figure 1, the implementation of the risk register model follows four processes. Firstly, the risks have to be identified. Secondly, they have to be assessed based on their impact and probability. After risk assessment, it is important to define the actions that must be taken, in order to manage the risks. The final process of the risk register model follows, deals with the ways the risks can be monitored. <ref name="Pmi" /> <ref name="ot" /> <ref name="PRINCE"/> The outcome of the previously mentioned processes is the input for the risk register framework.

[[File:Screenshot 2021-02-25 221935.png‎|center|thumb|310px|Figure 1: Implementation steps of Risk Register (own figure, based on <ref name="Pmi" />,<ref name="ot" /> and <ref name="PRINCE"/>) ]]

Risk register has the form of a table where each column represents different characteristics of the potential risks.<ref name="latvia"> Project Risk Register Analysis Based on the Theoretical Analysis of Project Management Notion of Risk, Juris Uzulāns, University of Latvia, 2016 Retrieved from: https://content.sciendo.com/configurable/contentpage/journals$002feb$002f29$002f1$002farticle-p43.xml </ref> In order to start building the risk register the first step is the identification of the risks. Once the potential threats are known it is vital to provide a brief description for each one. <ref name="Pmi" /> This helps the project managers not only to clarify the risks but also to understand why they are threatening the project’s success. Secondly, for the assessment of the risks, their probability and impact on the project are examined. Furthermore, in'' ‘Practice Standard for Project Risk Management’'' it is stated that the evaluation of the risk is depending on their impact and their frequency to happen.<ref name="Pmi" /> For instance, the risks that have high impact and probability to occur, are risks with higher importance than the risks with low frequency and impact. The identification of the risks’ importance is an essential element for project managers to know which risks are needed more attention and time for setting up a plan in order to overcome them. <ref name="Pmi" /> Furthermore, based on the ''‘PMBOK guide’'' the risk register also includes information about the person who must tackle every risk and the actions that he has to take to eliminate its negative consequences. <ref name="ot" /> Finally, the risks should be monitored in order to prevent unexpected events. <ref name="Pmi" /> The above elements are demanding high attention as they are mainly focused on dominant areas of the risk management process which are the identification of the threats, the evaluation of their importance, and the course of action that should be taken. Figure 2 illustrates the risk register table based on the discussion above.

[[File:table1111.png‎|center|thumb|600px|Figure 2: Risk Register table (own figure, based on the discusion above]]

==How Risk register is used ? ==
In order to have an in-depth understanding of the risk register, it is of utmost importance to analyse the way that it can be used. The tool aims to eliminate the negative impacts of the various threats by identifying, assessing, evaluating, and monitoring them. The following sections provide a guidance on how the four processes of risk register can be implemented.
=== 1. How to identify the risks ===
As a first step, the risks have to be identified by using the right techniques. Once this is complete, a short description of the risks that have been identified through the risk management process is provided.

''' 1.1 Risk identification '''

As it is quoted in ''‘Practice Standard for Project Risk Management’'', ''‘’ A risk cannot be managed unless it is first identified.’’'' <ref name="Pmi" /> (p.25) The identified risks are the first information that will be used in the risk register. <ref name="Pmi" /> <ref name="ot" /> It is worth noting that the risk identification process is continuous because as time passes, the number of information increases. In other words, new risks will become knowable by repeating the risk identification process in different phases of a project. <ref name="Pmi" />

In this article, three methods are used for the risk identification process and all of them are following the ''‘Practice Standard for Project Risk Management’'' <ref name="Pmi" /> (p.28):

*'''''Historical review''''': This technique is used as an analysis of events that happened in the past. When this method, is used it is vital to make sure that the events that are under observation are correlated with risks that happened before in this project or in different projects from the same or different company. This method demands attention as there is the risk to compare data and risks from projects that are not closely connected to the project.
* '''''Current Assessment''''': In this method, the risk identification process is focused on analysing the project’s uncertainty based on the information that is known in this specific period of time.
*''''' Creativity Techniques''''': This approach is based on the creativity of the people who participate in the project. To be more specific, stakeholders have the chance to work individually or with other people in order to identify risks by using creative methods and thinking outside of the box.

All of the techniques mentioned above have both strong points and limitations. This means that if they are used separately, they might lead to inadequate results. Thus, the combination of the three techniques can guarantee more accurate results. <ref name="Pmi" /> (p.28)

''' 1.2 Risk description'''

The description of the identified risks is a very important component of the risk identification process. It is a way to make sure that the risks are well communicated and understood among all the stakeholders. <ref name="ppp"> Guide to Using a Risk Register, Stephanie Ray, https://www.projectmanager.com/blog/guide-using-risk-register Accessed on 19/02/2020 </ref> For instance, in a construction problem, it is identified that a potential risk could be a shock in the economy. A potential explanation is that a shock in the economy could increase the price of raw materials and as a result the project might exceed the agreed budget. As it could be observed, the description of this risk could give a better insight into what this change might impact.

=== 2. How to assess the risks ===
The assessment of the various risks could be applied by using two methods, namely, the qualitative and quantitative risk analysis. Both methods are used to evaluate risks’ importance to the project. This includes an analysis of the probability that each risk has to occur and the impact that they might have on the project. <ref name="Pmi" /> In this article, the assessment of the identified risks is following the ''‘’ Practice Standard for Project Risk Management‘’ '' and the''‘’ PMBOK guide ‘’ ''.

* '''Qualitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

In qualitative risk analysis, the risks are evaluated and ranked based on their probability, impact, and some other characteristics that have been defined before the implementation of the analysis. This analysis is implemented regularly as new threats might need to be identified. The basic components of qualitative risk analysis are the high or low probability of a risk to happen and the consequences that it might have in ''‘’ one or more project objectives such as schedule, cost, quality, or performance.’’'' <ref name="ot" /> (p.423) Additionally, in qualitative risk analysis the risks can be grouped based on various criteria. For example, they can be grouped by risks that might exceed projects’ deadlines. This way, the project management team could monitor the risks in a more effective way since not only they will know the project areas they need to pay more attention to, but they will also have a quicker response managing the threats of the several categories.

* '''Quantitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

The quantitative risk analysis is used to calculate risks’ effects on the project. While this numerical analysis is not considered vital for all the projects, it provides more pragmatistic results. The implementation of the quantitative risk analysis follows on from the qualitative risk analysis. This could be explained by the fact that in the qualitative risk analysis the risks are already prioritized and thus the most vital threats are recognized and could be calculated. The impact and the probability are calculated, and the risk register table can be updated with numerical results.

=== 3. How to respond to the risks ===

It is of utmost importance to tackle the identified risks once they have been assessed. In order to do so, it is necessary to perform a risk management plan which will include the actions for dealing with the risks and the person who is responsible to tackle them. As a first step the risks should be known by all the stakeholders. Every potential risk is assigned to the right people. These people are called risk owners and they are responsible with controlling and finding solutions for the risks they are assigned with. The risks could harm the project in various ways and for this reason, there should be a plan with responses for all of them.<ref name="Pmi" /> In the ''‘Practice Standard for Project Risk Management’'' it is written that ''’’ the planning entails agreeing upon the actions to be taken and the potential changes to the budget, schedule, resources, and scope which these actions might cause.’’'' <ref name="Pmi" /> (p.43) Furthermore, the actions that have to be taken for every risk should be developed at the very early stage of its identification. In other words, it is integral to have the strategies and responses in advance so that project’s time schedule will change as little as possible. <ref name="Pmi" /> The risk register includes all the responses and actions on its table. Once new risks are identified risk register is updated with new strategies that the risk owner has to follow. Moreover, throughout the lifecycle of a project, it is possible to make adjustments and corrections to the plans of the previously identified risks. <ref name="ppp" />

=== 4. How to monitor the risks ===

Risk monitoring is the last process that needs to be implemented in order to fill in the risk register table. This final step is as important as the three steps mentioned above. Risk should be monitored throughout the life cycle of a project. It is a continuous process that includes the actions that have to be taken in order to control not only the risks that already have been identified but also the new threats that have to be tamed. <ref name="Pmi" />. <ref name="ot" /> Additionally, risk monitoring is used to certify that all the risk responses are taken place when there is a need for action. This is a way to appraise the effectiveness of the responses and the risk owner in the risk management process. <ref name="Pmi" /> The process starts by checking the risk register table. The table should include the appropriate responses for every risk, otherwise, it has to be updated with the new actions that have to be taken.<ref name="Pmi" /> Moreover, it is important for the new actions and changes to be well communicated to the stakeholders and to the people responsible for that specific risks. The number of information varies at the different stages of a project. More information is available to the project managers as the project continues its processes, which means that changes can be made in the risk register. These changes will be defined during the monitoring process and will be updated and documented in the risk register by providing new information for the actions that have to be changed. <ref name="Pmi" />

In this article, three techniques are analyzed for controlling the risks. These techniques are analyzed in the ''‘PMBOK guide ’'' <ref name="ot" /> (p.456-457) :

* '''Data analysis''': This technique is used to ensure that the reserves of the project are enough to not threaten its budget and the deadlines. <ref name="ot" /> More specifically, this analysis is checking if the reserves that a project has as a backup is enough to ensure that it will have the resources to manage an unexpected event that will make its budget and time exceed the agreed limits. <ref name="Pmi" />

* '''Audits''': This method applied in order to evaluate the performance of the processes included in the risk management and hence they are recorded in the risk register. It is worth noting that this way of monitoring risks can be conducted during project meetings when the project team examines the risks. <ref name="ot" />

* '''Meetings''': During meetings, the project management team can evaluate the various risks. This is a vital process that examines the overall process of risk management planning. More specifically, the meeting can ensure that all the stakeholders have a clear overview of the risks that need to be tackled. Furthermore, it is possible that some of the identified risks happened in the past, and through the meeting, the project management team can communicate the learning outcomes and mistakes that they should avoid in the future. <ref name="ot" />

After these processes, the risk register framework is updated with the new data in order to assist the project management team with the risk management process.

==Reflections==
While many positive outcomes can arise from the use of the risk register framework, there are also some limitations that are worth mentioning. In this section, the advantages and limitations of the risk register framework are discussed.
=== Advantages ===
The risk register is used to document information about the various risks that have been identified not only at the very early stages but also throughout the whole lifecycle of the project. This is an extremely beneficial characteristic of the tool that can be used for the assessment of a project's performance as well as for the strategic and decision-making processes that are related to risk management. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> More specifically, as the project is developing, the amount of gathered information is growing which means that new risks will be identified to threaten the project's success. The risk register table is storing the information from the risks that already have been identified and evaluated, and once new treats have been found, the table is expanded with the new data. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> This could be vital for the overall success of the project since the new risk could be well communicated among the stakeholders and thus they will be informed for the new actions they have to take in order to eliminate the negative impact of the threats. Additionally, the table includes information that is the output of the qualitative risk analysis. In other words, in the qualitative analysis, it is examined how possible is for a risk to take place and the impact that it will have on the project. This analysis is used to prioritize the risks based on their importance. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> Once the risks are ranked, the stakeholders are informed of the threats that they have to pay more attention to. This means that they might have to spend more time planning a strategy around these risks as they will have a higher impact. Finally, the risk register is an advantageous tool for complex projects. When a project is very complex, it's important to use tools that could break down the planning processes. Risk register, due to its structure, provides the needed information for every risk from the moment it is identified. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref>

=== Limitations ===
The identified risks are listed based on the critical way of thinking of the people who are associated with the risk evaluation. This could be a limitation since the results on the risk register table might reflect the personal opinion of the people who implemented it and not the reality.<ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref> <ref name="fd"> Why risk registers don't do enough to help you manage risks, https://www.civilsociety.co.uk/finance/why-risk-registers-don-t-do-enough-to-help-you-manage-risks.html, Accessed on 22/02/2020 </ref> Moreover, the development of the risk register table requires a lot of time in order to insert the data from the four processes. Apart from that since the table is updated when changes are made either to the list of the identified risks or to the actions that have to be taken, it is possible that mistakes might occur when the new data are imported. Hence, the implementation of the documented results of the risk register seeks attention in order to avoid mistakes. However, the risk register is more than important when it comes to analysing the risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> This means that even though it is a time-consuming process, the outcomes of the tool can prevent threats that otherwise could have a negative impact on the project.

It is worth noting, that ignoring the limitations of the risk management tool could have a negative impact on the project. Nevertheless, it is a very important tool that should be applied in the risk management processes most or all of the time.

==Annotated bibliography==
* '' "Practice standard for project risk management." Project Management Institute, 2009.''
This book is based on the PMBOK Guide– Fourth Edition. It is a book about the risk management processes that a project has to follow. It analyses the techniques for the identification, assessment, responding, and controlling of the risks. In this book, the reader can find information for the risk register model and how it is involved in all the previously mentioned processes. Although the book provides many details of how to manage risks, it does not illustrate the risk register table. For this reason, the visualization of the table in this article is based on the theoretical outcomes of the book and not on the graphical illustrations included in it.

* ''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017)''
This book is focused on how to manage projects based on PRINCE2 principles. It describes the activities that a project needs based on its implementation stage. Risks analysis is also explained in one of the chapters of the book. In this book, the various stages of the risk management process are explained by providing the needing theory and figures. The design of figure 1 of the article is inspired by one of the illustrations of the book. However, the risk register model is also not illustrated in one of the pages of the book and that could be considered as a negative point.

* ''Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017)''
The book A guide to the Project Management Body of Knowledge provides detailed information on how to manage projects. The risk register framework is analyzed in the chapters of the book by providing information on the usage of the tool in the various processes of risk management. This book is a very useful guide for project management planning. It provides many details for the implementation and organization of projects.

==References==
<references/>

Risk Register analysis

2021-02-28T18:43:47Z

Dorothea Georgiadou: /* Elements of Risk Register */

Developed by Dorothea Georgiadou

In an age where the economic, social, and political environment is constantly shifting, there is an urgent need to study the risks that may threaten the success of a project. It is particularly important to study the risks that may adversely affect the project and lead to events that might have as a consequence the exceeding of the agreed budget and time. For this reason, the risk management planning should identify and describe in detail the potential risks by providing the needed information for the actions that should be done for eliminating their negative impact. The high uncertainty that exists in projects necessitates the use of a management tool that will control the risks. <ref name="Pmi"> Project Mangement Institute. "Practice standard for project risk management." Project Management Institute, 2009. </ref> In this article the risk management framework ‘’Risk register’’ is explained. The risk register is a tool that covers and studies many aspects of risk management processes. More specifically, the aim of this article is to explain how this tool can be used to document the outcomes of the risk management processes. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013, Retrieved from:https://www.researchgate.net/publication/263528336_Risk_register_developement_and_implementation_for_construction_projects </ref> The article provides a description of the tool along with the reasons that it should be used. It is a framework that aims to record the information from the processes related to the identification, assessment, responding, and monitoring of potential risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. Finally, the article analyzes along with the benefits also the limitations of this risk management tool.

== Why use risk register? ==
In an ever-changing environment, a projects’ success is associated with a high level of uncertainty. In the ‘Practice Standard for Project Risk Management’, risk management is an approach that plays a vital role in the strategic and decision-making processes since adjustments in the project management planning can be done after the identification of the projects’ challenges. The risk register framework is used to support the risk management process in order to eliminate the negative impact that the various threats might have on a project. Threats could come from the external and internal environment of the company. The external risks are associated with the economic, social, political, and technological environment, while the internal threats include risks that are related to human actions and estimations. For example, it is possible for people to make wrong estimations because of inexperience and underestimation of some threats. This high level of uncertainty makes it increasingly necessary to use a model that assists the risk management process in a more effective way. <ref name="Pmi" /> <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>.
=== The role of Risk Register ===
In ''‘Practice Standard for Project Risk Management’'', the risk register is defined as the framework that is used in project risk management for the documentation of the identified risks. <ref name="Pmi" /> It records all the needed information that will be the steppingstone to overcome the risks that might menace projects' success. <ref name="Pmi" /> It is worth noting that based on ''‘PRINCE2’'', the risks are divided into threats and opportunities. Threats are the risks that could have negative consequences for the project, while opportunities could bring positive outcomes to the company. <ref name="PRINCE"> Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017) Retrieved from: https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=4863041</ref> The article is mainly focused on the documentation of the various threats in the risk register. The importance of the tool is highlighted in the fact that it can assist project managers with tackling potential threats and to have a better and clearer overview of the internal and external risks that might negatively affect the success of the project. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref> The aim of the risk register is to record information related to the identification, assessment, evaluation of importance, and managing of the potential risks. <ref name="Pmi" /> <ref name="PRINCE" /> More specifically, the uncertainty that exists in projects makes it necessary to use a model that provides various information for the events that could threaten the projects. <ref name="Pmi" />

In the ''‘PMBOK guide ’ ''it is outlined that the tool risk register can be used in different phases of a project. Firstly, it can be used at a very early stage of a project in order to provide information for the risks that might be a threat. Secondly, as the project continues, new threats are recorded and documented in the risk register. In other words, it is used to update the new risks and inform the risk owners how they should monitor the new threats. Finally, it documents all the risks that have been recorded after the completion of a project. <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>

=== Elements of Risk Register===

As can be seen in figure 1, the implementation of the risk register model follows four processes. Firstly, the risks have to be identified. Secondly, they have to be assessed based on their impact and probability. After risk assessment, it is important to define the actions that must be taken, in order to manage the risks. The final process of the risk register model follows, deals with the ways the risks can be monitored. <ref name="Pmi" /> <ref name="ot" /> <ref name="PRINCE"/> The outcome of the previously mentioned processes is the input for the risk register framework.

[[File:Screenshot 2021-02-25 221935.png‎|center|thumb|310px|Figure 1: Implementation steps of Risk Register (own figure, based on <ref name="Pmi" />,<ref name="ot" /> and <ref name="PRINCE"/>) ]]

Risk register has the form of a table where each column represents different characteristics of the potential risks.<ref name="latvia"> Project Risk Register Analysis Based on the Theoretical Analysis of Project Management Notion of Risk, Juris Uzulāns, University of Latvia, 2016 Retrieved from: https://content.sciendo.com/configurable/contentpage/journals$002feb$002f29$002f1$002farticle-p43.xml </ref> In order to start building the risk register the first step is the identification of the risks. Once the potential threats are known it is vital to provide a brief description for each one. <ref name="Pmi" /> This helps the project managers not only to clarify the risks but also to understand why they are threatening the project’s success. Secondly, for the assessment of the risks, their probability and impact on the project are examined. Furthermore, in'' ‘Practice Standard for Project Risk Management’'' it is stated that the evaluation of the risk is depending on their impact and their frequency to happen.<ref name="Pmi" /> For instance, the risks that have high impact and probability to occur, are risks with higher importance than the risks with low frequency and impact. The identification of the risks’ importance is an essential element for project managers to know which risks are needed more attention and time for setting up a plan in order to overcome them. <ref name="Pmi" /> Furthermore, based on the ''‘PMBOK guide’'' the risk register also includes information about the person who must tackle every risk and the actions that he has to take to eliminate its negative consequences. <ref name="ot" /> Finally, the risks should be monitored in order to prevent unexpected events. <ref name="Pmi" /> The above elements are demanding high attention as they are mainly focused on dominant areas of the risk management process which are the identification of the threats, the evaluation of their importance, and the course of action that should be taken.
[[File:table1111.png‎|center|thumb|600px|Figure 2: Risk Register table (own figure, based on <ref name="Pmi" /> and <ref name="PRINCE"/>) ]]

==How Risk register is used ? ==
In order to have an in-depth understanding of the risk register, it is of utmost importance to analyse the way that it can be used. The tool aims to eliminate the negative impacts of the various threats by identifying, assessing, evaluating, and monitoring them. The following sections provide a guidance on how the four processes of risk register can be implemented.
=== 1. How to identify the risks ===
As a first step, the risks have to be identified by using the right techniques. Once this is complete, a short description of the risks that have been identified through the risk management process is provided.

''' 1.1 Risk identification '''

As it is quoted in ''‘Practice Standard for Project Risk Management’'', ''‘’ A risk cannot be managed unless it is first identified.’’'' <ref name="Pmi" /> (p.25) The identified risks are the first information that will be used in the risk register. <ref name="Pmi" /> <ref name="ot" /> It is worth noting that the risk identification process is continuous because as time passes, the number of information increases. In other words, new risks will become knowable by repeating the risk identification process in different phases of a project. <ref name="Pmi" />

In this article, three methods are used for the risk identification process and all of them are following the ''‘Practice Standard for Project Risk Management’'' <ref name="Pmi" /> (p.28):

*'''''Historical review''''': This technique is used as an analysis of events that happened in the past. When this method, is used it is vital to make sure that the events that are under observation are correlated with risks that happened before in this project or in different projects from the same or different company. This method demands attention as there is the risk to compare data and risks from projects that are not closely connected to the project.
* '''''Current Assessment''''': In this method, the risk identification process is focused on analysing the project’s uncertainty based on the information that is known in this specific period of time.
*''''' Creativity Techniques''''': This approach is based on the creativity of the people who participate in the project. To be more specific, stakeholders have the chance to work individually or with other people in order to identify risks by using creative methods and thinking outside of the box.

All of the techniques mentioned above have both strong points and limitations. This means that if they are used separately, they might lead to inadequate results. Thus, the combination of the three techniques can guarantee more accurate results. <ref name="Pmi" /> (p.28)

''' 1.2 Risk description'''

The description of the identified risks is a very important component of the risk identification process. It is a way to make sure that the risks are well communicated and understood among all the stakeholders. <ref name="ppp"> Guide to Using a Risk Register, Stephanie Ray, https://www.projectmanager.com/blog/guide-using-risk-register Accessed on 19/02/2020 </ref> For instance, in a construction problem, it is identified that a potential risk could be a shock in the economy. A potential explanation is that a shock in the economy could increase the price of raw materials and as a result the project might exceed the agreed budget. As it could be observed, the description of this risk could give a better insight into what this change might impact.

=== 2. How to assess the risks ===
The assessment of the various risks could be applied by using two methods, namely, the qualitative and quantitative risk analysis. Both methods are used to evaluate risks’ importance to the project. This includes an analysis of the probability that each risk has to occur and the impact that they might have on the project. <ref name="Pmi" /> In this article, the assessment of the identified risks is following the ''‘’ Practice Standard for Project Risk Management‘’ '' and the''‘’ PMBOK guide ‘’ ''.

* '''Qualitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

In qualitative risk analysis, the risks are evaluated and ranked based on their probability, impact, and some other characteristics that have been defined before the implementation of the analysis. This analysis is implemented regularly as new threats might need to be identified. The basic components of qualitative risk analysis are the high or low probability of a risk to happen and the consequences that it might have in ''‘’ one or more project objectives such as schedule, cost, quality, or performance.’’'' <ref name="ot" /> (p.423) Additionally, in qualitative risk analysis the risks can be grouped based on various criteria. For example, they can be grouped by risks that might exceed projects’ deadlines. This way, the project management team could monitor the risks in a more effective way since not only they will know the project areas they need to pay more attention to, but they will also have a quicker response managing the threats of the several categories.

* '''Quantitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

The quantitative risk analysis is used to calculate risks’ effects on the project. While this numerical analysis is not considered vital for all the projects, it provides more pragmatistic results. The implementation of the quantitative risk analysis follows on from the qualitative risk analysis. This could be explained by the fact that in the qualitative risk analysis the risks are already prioritized and thus the most vital threats are recognized and could be calculated. The impact and the probability are calculated, and the risk register table can be updated with numerical results.

=== 3. How to respond to the risks ===

It is of utmost importance to tackle the identified risks once they have been assessed. In order to do so, it is necessary to perform a risk management plan which will include the actions for dealing with the risks and the person who is responsible to tackle them. As a first step the risks should be known by all the stakeholders. Every potential risk is assigned to the right people. These people are called risk owners and they are responsible with controlling and finding solutions for the risks they are assigned with. The risks could harm the project in various ways and for this reason, there should be a plan with responses for all of them.<ref name="Pmi" /> In the ''‘Practice Standard for Project Risk Management’'' it is written that ''’’ the planning entails agreeing upon the actions to be taken and the potential changes to the budget, schedule, resources, and scope which these actions might cause.’’'' <ref name="Pmi" /> (p.43) Furthermore, the actions that have to be taken for every risk should be developed at the very early stage of its identification. In other words, it is integral to have the strategies and responses in advance so that project’s time schedule will change as little as possible. <ref name="Pmi" /> The risk register includes all the responses and actions on its table. Once new risks are identified risk register is updated with new strategies that the risk owner has to follow. Moreover, throughout the lifecycle of a project, it is possible to make adjustments and corrections to the plans of the previously identified risks. <ref name="ppp" />

=== 4. How to monitor the risks ===

Risk monitoring is the last process that needs to be implemented in order to fill in the risk register table. This final step is as important as the three steps mentioned above. Risk should be monitored throughout the life cycle of a project. It is a continuous process that includes the actions that have to be taken in order to control not only the risks that already have been identified but also the new threats that have to be tamed. <ref name="Pmi" />. <ref name="ot" /> Additionally, risk monitoring is used to certify that all the risk responses are taken place when there is a need for action. This is a way to appraise the effectiveness of the responses and the risk owner in the risk management process. <ref name="Pmi" /> The process starts by checking the risk register table. The table should include the appropriate responses for every risk, otherwise, it has to be updated with the new actions that have to be taken.<ref name="Pmi" /> Moreover, it is important for the new actions and changes to be well communicated to the stakeholders and to the people responsible for that specific risks. The number of information varies at the different stages of a project. More information is available to the project managers as the project continues its processes, which means that changes can be made in the risk register. These changes will be defined during the monitoring process and will be updated and documented in the risk register by providing new information for the actions that have to be changed. <ref name="Pmi" />

In this article, three techniques are analyzed for controlling the risks. These techniques are analyzed in the ''‘PMBOK guide ’'' <ref name="ot" /> (p.456-457) :

* '''Data analysis''': This technique is used to ensure that the reserves of the project are enough to not threaten its budget and the deadlines. <ref name="ot" /> More specifically, this analysis is checking if the reserves that a project has as a backup is enough to ensure that it will have the resources to manage an unexpected event that will make its budget and time exceed the agreed limits. <ref name="Pmi" />

* '''Audits''': This method applied in order to evaluate the performance of the processes included in the risk management and hence they are recorded in the risk register. It is worth noting that this way of monitoring risks can be conducted during project meetings when the project team examines the risks. <ref name="ot" />

* '''Meetings''': During meetings, the project management team can evaluate the various risks. This is a vital process that examines the overall process of risk management planning. More specifically, the meeting can ensure that all the stakeholders have a clear overview of the risks that need to be tackled. Furthermore, it is possible that some of the identified risks happened in the past, and through the meeting, the project management team can communicate the learning outcomes and mistakes that they should avoid in the future. <ref name="ot" />

After these processes, the risk register framework is updated with the new data in order to assist the project management team with the risk management process.

==Reflections==
While many positive outcomes can arise from the use of the risk register framework, there are also some limitations that are worth mentioning. In this section, the advantages and limitations of the risk register framework are discussed.
=== Advantages ===
The risk register is used to document information about the various risks that have been identified not only at the very early stages but also throughout the whole lifecycle of the project. This is an extremely beneficial characteristic of the tool that can be used for the assessment of a project's performance as well as for the strategic and decision-making processes that are related to risk management. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> More specifically, as the project is developing, the amount of gathered information is growing which means that new risks will be identified to threaten the project's success. The risk register table is storing the information from the risks that already have been identified and evaluated, and once new treats have been found, the table is expanded with the new data. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> This could be vital for the overall success of the project since the new risk could be well communicated among the stakeholders and thus they will be informed for the new actions they have to take in order to eliminate the negative impact of the threats. Additionally, the table includes information that is the output of the qualitative risk analysis. In other words, in the qualitative analysis, it is examined how possible is for a risk to take place and the impact that it will have on the project. This analysis is used to prioritize the risks based on their importance. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> Once the risks are ranked, the stakeholders are informed of the threats that they have to pay more attention to. This means that they might have to spend more time planning a strategy around these risks as they will have a higher impact. Finally, the risk register is an advantageous tool for complex projects. When a project is very complex, it's important to use tools that could break down the planning processes. Risk register, due to its structure, provides the needed information for every risk from the moment it is identified. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref>

=== Limitations ===
The identified risks are listed based on the critical way of thinking of the people who are associated with the risk evaluation. This could be a limitation since the results on the risk register table might reflect the personal opinion of the people who implemented it and not the reality.<ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref> <ref name="fd"> Why risk registers don't do enough to help you manage risks, https://www.civilsociety.co.uk/finance/why-risk-registers-don-t-do-enough-to-help-you-manage-risks.html, Accessed on 22/02/2020 </ref> Moreover, the development of the risk register table requires a lot of time in order to insert the data from the four processes. Apart from that since the table is updated when changes are made either to the list of the identified risks or to the actions that have to be taken, it is possible that mistakes might occur when the new data are imported. Hence, the implementation of the documented results of the risk register seeks attention in order to avoid mistakes. However, the risk register is more than important when it comes to analysing the risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> This means that even though it is a time-consuming process, the outcomes of the tool can prevent threats that otherwise could have a negative impact on the project.

It is worth noting, that ignoring the limitations of the risk management tool could have a negative impact on the project. Nevertheless, it is a very important tool that should be applied in the risk management processes most or all of the time.

==Annotated bibliography==
* '' "Practice standard for project risk management." Project Management Institute, 2009.''
This book is based on the PMBOK Guide– Fourth Edition. It is a book about the risk management processes that a project has to follow. It analyses the techniques for the identification, assessment, responding, and controlling of the risks. In this book, the reader can find information for the risk register model and how it is involved in all the previously mentioned processes. Although the book provides many details of how to manage risks, it does not illustrate the risk register table. For this reason, the visualization of the table in this article is based on the theoretical outcomes of the book and not on the graphical illustrations included in it.

* ''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017)''
This book is focused on how to manage projects based on PRINCE2 principles. It describes the activities that a project needs based on its implementation stage. Risks analysis is also explained in one of the chapters of the book. In this book, the various stages of the risk management process are explained by providing the needing theory and figures. The design of figure 1 of the article is inspired by one of the illustrations of the book. However, the risk register model is also not illustrated in one of the pages of the book and that could be considered as a negative point.

* ''Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017)''
The book A guide to the Project Management Body of Knowledge provides detailed information on how to manage projects. The risk register framework is analyzed in the chapters of the book by providing information on the usage of the tool in the various processes of risk management. This book is a very useful guide for project management planning. It provides many details for the implementation and organization of projects.

==References==
<references/>

Risk Register analysis

2021-02-28T18:39:58Z

Dorothea Georgiadou: /* Annotated bibliography */

Developed by Dorothea Georgiadou

In an age where the economic, social, and political environment is constantly shifting, there is an urgent need to study the risks that may threaten the success of a project. It is particularly important to study the risks that may adversely affect the project and lead to events that might have as a consequence the exceeding of the agreed budget and time. For this reason, the risk management planning should identify and describe in detail the potential risks by providing the needed information for the actions that should be done for eliminating their negative impact. The high uncertainty that exists in projects necessitates the use of a management tool that will control the risks. <ref name="Pmi"> Project Mangement Institute. "Practice standard for project risk management." Project Management Institute, 2009. </ref> In this article the risk management framework ‘’Risk register’’ is explained. The risk register is a tool that covers and studies many aspects of risk management processes. More specifically, the aim of this article is to explain how this tool can be used to document the outcomes of the risk management processes. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013, Retrieved from:https://www.researchgate.net/publication/263528336_Risk_register_developement_and_implementation_for_construction_projects </ref> The article provides a description of the tool along with the reasons that it should be used. It is a framework that aims to record the information from the processes related to the identification, assessment, responding, and monitoring of potential risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. Finally, the article analyzes along with the benefits also the limitations of this risk management tool.

== Why use risk register? ==
In an ever-changing environment, a projects’ success is associated with a high level of uncertainty. In the ‘Practice Standard for Project Risk Management’, risk management is an approach that plays a vital role in the strategic and decision-making processes since adjustments in the project management planning can be done after the identification of the projects’ challenges. The risk register framework is used to support the risk management process in order to eliminate the negative impact that the various threats might have on a project. Threats could come from the external and internal environment of the company. The external risks are associated with the economic, social, political, and technological environment, while the internal threats include risks that are related to human actions and estimations. For example, it is possible for people to make wrong estimations because of inexperience and underestimation of some threats. This high level of uncertainty makes it increasingly necessary to use a model that assists the risk management process in a more effective way. <ref name="Pmi" /> <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>.
=== The role of Risk Register ===
In ''‘Practice Standard for Project Risk Management’'', the risk register is defined as the framework that is used in project risk management for the documentation of the identified risks. <ref name="Pmi" /> It records all the needed information that will be the steppingstone to overcome the risks that might menace projects' success. <ref name="Pmi" /> It is worth noting that based on ''‘PRINCE2’'', the risks are divided into threats and opportunities. Threats are the risks that could have negative consequences for the project, while opportunities could bring positive outcomes to the company. <ref name="PRINCE"> Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017) Retrieved from: https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=4863041</ref> The article is mainly focused on the documentation of the various threats in the risk register. The importance of the tool is highlighted in the fact that it can assist project managers with tackling potential threats and to have a better and clearer overview of the internal and external risks that might negatively affect the success of the project. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref> The aim of the risk register is to record information related to the identification, assessment, evaluation of importance, and managing of the potential risks. <ref name="Pmi" /> <ref name="PRINCE" /> More specifically, the uncertainty that exists in projects makes it necessary to use a model that provides various information for the events that could threaten the projects. <ref name="Pmi" />

In the ''‘PMBOK guide ’ ''it is outlined that the tool risk register can be used in different phases of a project. Firstly, it can be used at a very early stage of a project in order to provide information for the risks that might be a threat. Secondly, as the project continues, new threats are recorded and documented in the risk register. In other words, it is used to update the new risks and inform the risk owners how they should monitor the new threats. Finally, it documents all the risks that have been recorded after the completion of a project. <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>

=== Elements of Risk Register===

As can be seen in figure 1, the implementation of the risk register model follows four processes. Firstly, the risks have to be identified. Secondly, they have to be assessed based on their impact and probability. After risk assessment, it is important to define the actions that must be taken, in order to manage the risks. The final process of the risk register model follows, deals with the ways the risks can be monitored. <ref name="Pmi" /> <ref name="ot" /> <ref name="PRINCE"/> The outcome of the previously mentioned processes is the input for the risk register framework.

[[File:Screenshot 2021-02-25 221935.png‎|center|thumb|310px|Figure 1: Implementation steps of Risk Register (own figure, based on <ref name="Pmi" /> and <ref name="PRINCE"/>) ]]

Risk register has the form of a table where each column represents different characteristics of the potential risks.<ref name="latvia"> Project Risk Register Analysis Based on the Theoretical Analysis of Project Management Notion of Risk, Juris Uzulāns, University of Latvia, 2016 Retrieved from: https://content.sciendo.com/configurable/contentpage/journals$002feb$002f29$002f1$002farticle-p43.xml </ref> In order to start building the risk register the first step is the identification of the risks. Once the potential threats are known it is vital to provide a brief description for each one. <ref name="Pmi" /> This helps the project managers not only to clarify the risks but also to understand why they are threatening the project’s success. Secondly, for the assessment of the risks, their probability and impact on the project are examined. Furthermore, in'' ‘Practice Standard for Project Risk Management’'' it is stated that the evaluation of the risk is depending on their impact and their frequency to happen.<ref name="Pmi" /> For instance, the risks that have high impact and probability to occur, are risks with higher importance than the risks with low frequency and impact. The identification of the risks’ importance is an essential element for project managers to know which risks are needed more attention and time for setting up a plan in order to overcome them. <ref name="Pmi" /> Furthermore, based on the ''‘PMBOK guide’'' the risk register also includes information about the person who must tackle every risk and the actions that he has to take to eliminate its negative consequences. <ref name="ot" /> Finally, the risks should be monitored in order to prevent unexpected events. <ref name="Pmi" /> The above elements are demanding high attention as they are mainly focused on dominant areas of the risk management process which are the identification of the threats, the evaluation of their importance, and the course of action that should be taken.
[[File:table1111.png‎|center|thumb|600px|Figure 2: Risk Register table (own figure, based on <ref name="Pmi" /> and <ref name="PRINCE"/>) ]]

==How Risk register is used ? ==
In order to have an in-depth understanding of the risk register, it is of utmost importance to analyse the way that it can be used. The tool aims to eliminate the negative impacts of the various threats by identifying, assessing, evaluating, and monitoring them. The following sections provide a guidance on how the four processes of risk register can be implemented.
=== 1. How to identify the risks ===
As a first step, the risks have to be identified by using the right techniques. Once this is complete, a short description of the risks that have been identified through the risk management process is provided.

''' 1.1 Risk identification '''

As it is quoted in ''‘Practice Standard for Project Risk Management’'', ''‘’ A risk cannot be managed unless it is first identified.’’'' <ref name="Pmi" /> (p.25) The identified risks are the first information that will be used in the risk register. <ref name="Pmi" /> <ref name="ot" /> It is worth noting that the risk identification process is continuous because as time passes, the number of information increases. In other words, new risks will become knowable by repeating the risk identification process in different phases of a project. <ref name="Pmi" />

In this article, three methods are used for the risk identification process and all of them are following the ''‘Practice Standard for Project Risk Management’'' <ref name="Pmi" /> (p.28):

*'''''Historical review''''': This technique is used as an analysis of events that happened in the past. When this method, is used it is vital to make sure that the events that are under observation are correlated with risks that happened before in this project or in different projects from the same or different company. This method demands attention as there is the risk to compare data and risks from projects that are not closely connected to the project.
* '''''Current Assessment''''': In this method, the risk identification process is focused on analysing the project’s uncertainty based on the information that is known in this specific period of time.
*''''' Creativity Techniques''''': This approach is based on the creativity of the people who participate in the project. To be more specific, stakeholders have the chance to work individually or with other people in order to identify risks by using creative methods and thinking outside of the box.

All of the techniques mentioned above have both strong points and limitations. This means that if they are used separately, they might lead to inadequate results. Thus, the combination of the three techniques can guarantee more accurate results. <ref name="Pmi" /> (p.28)

''' 1.2 Risk description'''

The description of the identified risks is a very important component of the risk identification process. It is a way to make sure that the risks are well communicated and understood among all the stakeholders. <ref name="ppp"> Guide to Using a Risk Register, Stephanie Ray, https://www.projectmanager.com/blog/guide-using-risk-register Accessed on 19/02/2020 </ref> For instance, in a construction problem, it is identified that a potential risk could be a shock in the economy. A potential explanation is that a shock in the economy could increase the price of raw materials and as a result the project might exceed the agreed budget. As it could be observed, the description of this risk could give a better insight into what this change might impact.

=== 2. How to assess the risks ===
The assessment of the various risks could be applied by using two methods, namely, the qualitative and quantitative risk analysis. Both methods are used to evaluate risks’ importance to the project. This includes an analysis of the probability that each risk has to occur and the impact that they might have on the project. <ref name="Pmi" /> In this article, the assessment of the identified risks is following the ''‘’ Practice Standard for Project Risk Management‘’ '' and the''‘’ PMBOK guide ‘’ ''.

* '''Qualitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

In qualitative risk analysis, the risks are evaluated and ranked based on their probability, impact, and some other characteristics that have been defined before the implementation of the analysis. This analysis is implemented regularly as new threats might need to be identified. The basic components of qualitative risk analysis are the high or low probability of a risk to happen and the consequences that it might have in ''‘’ one or more project objectives such as schedule, cost, quality, or performance.’’'' <ref name="ot" /> (p.423) Additionally, in qualitative risk analysis the risks can be grouped based on various criteria. For example, they can be grouped by risks that might exceed projects’ deadlines. This way, the project management team could monitor the risks in a more effective way since not only they will know the project areas they need to pay more attention to, but they will also have a quicker response managing the threats of the several categories.

* '''Quantitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

The quantitative risk analysis is used to calculate risks’ effects on the project. While this numerical analysis is not considered vital for all the projects, it provides more pragmatistic results. The implementation of the quantitative risk analysis follows on from the qualitative risk analysis. This could be explained by the fact that in the qualitative risk analysis the risks are already prioritized and thus the most vital threats are recognized and could be calculated. The impact and the probability are calculated, and the risk register table can be updated with numerical results.

=== 3. How to respond to the risks ===

It is of utmost importance to tackle the identified risks once they have been assessed. In order to do so, it is necessary to perform a risk management plan which will include the actions for dealing with the risks and the person who is responsible to tackle them. As a first step the risks should be known by all the stakeholders. Every potential risk is assigned to the right people. These people are called risk owners and they are responsible with controlling and finding solutions for the risks they are assigned with. The risks could harm the project in various ways and for this reason, there should be a plan with responses for all of them.<ref name="Pmi" /> In the ''‘Practice Standard for Project Risk Management’'' it is written that ''’’ the planning entails agreeing upon the actions to be taken and the potential changes to the budget, schedule, resources, and scope which these actions might cause.’’'' <ref name="Pmi" /> (p.43) Furthermore, the actions that have to be taken for every risk should be developed at the very early stage of its identification. In other words, it is integral to have the strategies and responses in advance so that project’s time schedule will change as little as possible. <ref name="Pmi" /> The risk register includes all the responses and actions on its table. Once new risks are identified risk register is updated with new strategies that the risk owner has to follow. Moreover, throughout the lifecycle of a project, it is possible to make adjustments and corrections to the plans of the previously identified risks. <ref name="ppp" />

=== 4. How to monitor the risks ===

Risk monitoring is the last process that needs to be implemented in order to fill in the risk register table. This final step is as important as the three steps mentioned above. Risk should be monitored throughout the life cycle of a project. It is a continuous process that includes the actions that have to be taken in order to control not only the risks that already have been identified but also the new threats that have to be tamed. <ref name="Pmi" />. <ref name="ot" /> Additionally, risk monitoring is used to certify that all the risk responses are taken place when there is a need for action. This is a way to appraise the effectiveness of the responses and the risk owner in the risk management process. <ref name="Pmi" /> The process starts by checking the risk register table. The table should include the appropriate responses for every risk, otherwise, it has to be updated with the new actions that have to be taken.<ref name="Pmi" /> Moreover, it is important for the new actions and changes to be well communicated to the stakeholders and to the people responsible for that specific risks. The number of information varies at the different stages of a project. More information is available to the project managers as the project continues its processes, which means that changes can be made in the risk register. These changes will be defined during the monitoring process and will be updated and documented in the risk register by providing new information for the actions that have to be changed. <ref name="Pmi" />

In this article, three techniques are analyzed for controlling the risks. These techniques are analyzed in the ''‘PMBOK guide ’'' <ref name="ot" /> (p.456-457) :

* '''Data analysis''': This technique is used to ensure that the reserves of the project are enough to not threaten its budget and the deadlines. <ref name="ot" /> More specifically, this analysis is checking if the reserves that a project has as a backup is enough to ensure that it will have the resources to manage an unexpected event that will make its budget and time exceed the agreed limits. <ref name="Pmi" />

* '''Audits''': This method applied in order to evaluate the performance of the processes included in the risk management and hence they are recorded in the risk register. It is worth noting that this way of monitoring risks can be conducted during project meetings when the project team examines the risks. <ref name="ot" />

* '''Meetings''': During meetings, the project management team can evaluate the various risks. This is a vital process that examines the overall process of risk management planning. More specifically, the meeting can ensure that all the stakeholders have a clear overview of the risks that need to be tackled. Furthermore, it is possible that some of the identified risks happened in the past, and through the meeting, the project management team can communicate the learning outcomes and mistakes that they should avoid in the future. <ref name="ot" />

After these processes, the risk register framework is updated with the new data in order to assist the project management team with the risk management process.

==Reflections==
While many positive outcomes can arise from the use of the risk register framework, there are also some limitations that are worth mentioning. In this section, the advantages and limitations of the risk register framework are discussed.
=== Advantages ===
The risk register is used to document information about the various risks that have been identified not only at the very early stages but also throughout the whole lifecycle of the project. This is an extremely beneficial characteristic of the tool that can be used for the assessment of a project's performance as well as for the strategic and decision-making processes that are related to risk management. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> More specifically, as the project is developing, the amount of gathered information is growing which means that new risks will be identified to threaten the project's success. The risk register table is storing the information from the risks that already have been identified and evaluated, and once new treats have been found, the table is expanded with the new data. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> This could be vital for the overall success of the project since the new risk could be well communicated among the stakeholders and thus they will be informed for the new actions they have to take in order to eliminate the negative impact of the threats. Additionally, the table includes information that is the output of the qualitative risk analysis. In other words, in the qualitative analysis, it is examined how possible is for a risk to take place and the impact that it will have on the project. This analysis is used to prioritize the risks based on their importance. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> Once the risks are ranked, the stakeholders are informed of the threats that they have to pay more attention to. This means that they might have to spend more time planning a strategy around these risks as they will have a higher impact. Finally, the risk register is an advantageous tool for complex projects. When a project is very complex, it's important to use tools that could break down the planning processes. Risk register, due to its structure, provides the needed information for every risk from the moment it is identified. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref>

=== Limitations ===
The identified risks are listed based on the critical way of thinking of the people who are associated with the risk evaluation. This could be a limitation since the results on the risk register table might reflect the personal opinion of the people who implemented it and not the reality.<ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref> <ref name="fd"> Why risk registers don't do enough to help you manage risks, https://www.civilsociety.co.uk/finance/why-risk-registers-don-t-do-enough-to-help-you-manage-risks.html, Accessed on 22/02/2020 </ref> Moreover, the development of the risk register table requires a lot of time in order to insert the data from the four processes. Apart from that since the table is updated when changes are made either to the list of the identified risks or to the actions that have to be taken, it is possible that mistakes might occur when the new data are imported. Hence, the implementation of the documented results of the risk register seeks attention in order to avoid mistakes. However, the risk register is more than important when it comes to analysing the risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> This means that even though it is a time-consuming process, the outcomes of the tool can prevent threats that otherwise could have a negative impact on the project.

It is worth noting, that ignoring the limitations of the risk management tool could have a negative impact on the project. Nevertheless, it is a very important tool that should be applied in the risk management processes most or all of the time.

==Annotated bibliography==
* '' "Practice standard for project risk management." Project Management Institute, 2009.''
This book is based on the PMBOK Guide– Fourth Edition. It is a book about the risk management processes that a project has to follow. It analyses the techniques for the identification, assessment, responding, and controlling of the risks. In this book, the reader can find information for the risk register model and how it is involved in all the previously mentioned processes. Although the book provides many details of how to manage risks, it does not illustrate the risk register table. For this reason, the visualization of the table in this article is based on the theoretical outcomes of the book and not on the graphical illustrations included in it.

* ''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017)''
This book is focused on how to manage projects based on PRINCE2 principles. It describes the activities that a project needs based on its implementation stage. Risks analysis is also explained in one of the chapters of the book. In this book, the various stages of the risk management process are explained by providing the needing theory and figures. The design of figure 1 of the article is inspired by one of the illustrations of the book. However, the risk register model is also not illustrated in one of the pages of the book and that could be considered as a negative point.

* ''Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017)''
The book A guide to the Project Management Body of Knowledge provides detailed information on how to manage projects. The risk register framework is analyzed in the chapters of the book by providing information on the usage of the tool in the various processes of risk management. This book is a very useful guide for project management planning. It provides many details for the implementation and organization of projects.

==References==
<references/>

Risk Register analysis

2021-02-28T18:22:58Z

Dorothea Georgiadou: /* Annotated bibliography */

Developed by Dorothea Georgiadou

In an age where the economic, social, and political environment is constantly shifting, there is an urgent need to study the risks that may threaten the success of a project. It is particularly important to study the risks that may adversely affect the project and lead to events that might have as a consequence the exceeding of the agreed budget and time. For this reason, the risk management planning should identify and describe in detail the potential risks by providing the needed information for the actions that should be done for eliminating their negative impact. The high uncertainty that exists in projects necessitates the use of a management tool that will control the risks. <ref name="Pmi"> Project Mangement Institute. "Practice standard for project risk management." Project Management Institute, 2009. </ref> In this article the risk management framework ‘’Risk register’’ is explained. The risk register is a tool that covers and studies many aspects of risk management processes. More specifically, the aim of this article is to explain how this tool can be used to document the outcomes of the risk management processes. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013, Retrieved from:https://www.researchgate.net/publication/263528336_Risk_register_developement_and_implementation_for_construction_projects </ref> The article provides a description of the tool along with the reasons that it should be used. It is a framework that aims to record the information from the processes related to the identification, assessment, responding, and monitoring of potential risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. Finally, the article analyzes along with the benefits also the limitations of this risk management tool.

== Why use risk register? ==
In an ever-changing environment, a projects’ success is associated with a high level of uncertainty. In the ‘Practice Standard for Project Risk Management’, risk management is an approach that plays a vital role in the strategic and decision-making processes since adjustments in the project management planning can be done after the identification of the projects’ challenges. The risk register framework is used to support the risk management process in order to eliminate the negative impact that the various threats might have on a project. Threats could come from the external and internal environment of the company. The external risks are associated with the economic, social, political, and technological environment, while the internal threats include risks that are related to human actions and estimations. For example, it is possible for people to make wrong estimations because of inexperience and underestimation of some threats. This high level of uncertainty makes it increasingly necessary to use a model that assists the risk management process in a more effective way. <ref name="Pmi" /> <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>.
=== The role of Risk Register ===
In ''‘Practice Standard for Project Risk Management’'', the risk register is defined as the framework that is used in project risk management for the documentation of the identified risks. <ref name="Pmi" /> It records all the needed information that will be the steppingstone to overcome the risks that might menace projects' success. <ref name="Pmi" /> It is worth noting that based on ''‘PRINCE2’'', the risks are divided into threats and opportunities. Threats are the risks that could have negative consequences for the project, while opportunities could bring positive outcomes to the company. <ref name="PRINCE"> Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017) Retrieved from: https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=4863041</ref> The article is mainly focused on the documentation of the various threats in the risk register. The importance of the tool is highlighted in the fact that it can assist project managers with tackling potential threats and to have a better and clearer overview of the internal and external risks that might negatively affect the success of the project. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref> The aim of the risk register is to record information related to the identification, assessment, evaluation of importance, and managing of the potential risks. <ref name="Pmi" /> <ref name="PRINCE" /> More specifically, the uncertainty that exists in projects makes it necessary to use a model that provides various information for the events that could threaten the projects. <ref name="Pmi" />

In the ''‘PMBOK guide ’ ''it is outlined that the tool risk register can be used in different phases of a project. Firstly, it can be used at a very early stage of a project in order to provide information for the risks that might be a threat. Secondly, as the project continues, new threats are recorded and documented in the risk register. In other words, it is used to update the new risks and inform the risk owners how they should monitor the new threats. Finally, it documents all the risks that have been recorded after the completion of a project. <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>

=== Elements of Risk Register===

As can be seen in figure 1, the implementation of the risk register model follows four processes. Firstly, the risks have to be identified. Secondly, they have to be assessed based on their impact and probability. After risk assessment, it is important to define the actions that must be taken, in order to manage the risks. The final process of the risk register model follows, deals with the ways the risks can be monitored. <ref name="Pmi" /> <ref name="ot" /> <ref name="PRINCE"/> The outcome of the previously mentioned processes is the input for the risk register framework.

[[File:Screenshot 2021-02-25 221935.png‎|center|thumb|310px|Figure 1: Implementation steps of Risk Register (own figure, based on <ref name="Pmi" /> and <ref name="PRINCE"/>) ]]

Risk register has the form of a table where each column represents different characteristics of the potential risks.<ref name="latvia"> Project Risk Register Analysis Based on the Theoretical Analysis of Project Management Notion of Risk, Juris Uzulāns, University of Latvia, 2016 Retrieved from: https://content.sciendo.com/configurable/contentpage/journals$002feb$002f29$002f1$002farticle-p43.xml </ref> In order to start building the risk register the first step is the identification of the risks. Once the potential threats are known it is vital to provide a brief description for each one. <ref name="Pmi" /> This helps the project managers not only to clarify the risks but also to understand why they are threatening the project’s success. Secondly, for the assessment of the risks, their probability and impact on the project are examined. Furthermore, in'' ‘Practice Standard for Project Risk Management’'' it is stated that the evaluation of the risk is depending on their impact and their frequency to happen.<ref name="Pmi" /> For instance, the risks that have high impact and probability to occur, are risks with higher importance than the risks with low frequency and impact. The identification of the risks’ importance is an essential element for project managers to know which risks are needed more attention and time for setting up a plan in order to overcome them. <ref name="Pmi" /> Furthermore, based on the ''‘PMBOK guide’'' the risk register also includes information about the person who must tackle every risk and the actions that he has to take to eliminate its negative consequences. <ref name="ot" /> Finally, the risks should be monitored in order to prevent unexpected events. <ref name="Pmi" /> The above elements are demanding high attention as they are mainly focused on dominant areas of the risk management process which are the identification of the threats, the evaluation of their importance, and the course of action that should be taken.
[[File:table1111.png‎|center|thumb|600px|Figure 2: Risk Register table (own figure, based on <ref name="Pmi" /> and <ref name="PRINCE"/>) ]]

==How Risk register is used ? ==
In order to have an in-depth understanding of the risk register, it is of utmost importance to analyse the way that it can be used. The tool aims to eliminate the negative impacts of the various threats by identifying, assessing, evaluating, and monitoring them. The following sections provide a guidance on how the four processes of risk register can be implemented.
=== 1. How to identify the risks ===
As a first step, the risks have to be identified by using the right techniques. Once this is complete, a short description of the risks that have been identified through the risk management process is provided.

''' 1.1 Risk identification '''

As it is quoted in ''‘Practice Standard for Project Risk Management’'', ''‘’ A risk cannot be managed unless it is first identified.’’'' <ref name="Pmi" /> (p.25) The identified risks are the first information that will be used in the risk register. <ref name="Pmi" /> <ref name="ot" /> It is worth noting that the risk identification process is continuous because as time passes, the number of information increases. In other words, new risks will become knowable by repeating the risk identification process in different phases of a project. <ref name="Pmi" />

In this article, three methods are used for the risk identification process and all of them are following the ''‘Practice Standard for Project Risk Management’'' <ref name="Pmi" /> (p.28):

*'''''Historical review''''': This technique is used as an analysis of events that happened in the past. When this method, is used it is vital to make sure that the events that are under observation are correlated with risks that happened before in this project or in different projects from the same or different company. This method demands attention as there is the risk to compare data and risks from projects that are not closely connected to the project.
* '''''Current Assessment''''': In this method, the risk identification process is focused on analysing the project’s uncertainty based on the information that is known in this specific period of time.
*''''' Creativity Techniques''''': This approach is based on the creativity of the people who participate in the project. To be more specific, stakeholders have the chance to work individually or with other people in order to identify risks by using creative methods and thinking outside of the box.

All of the techniques mentioned above have both strong points and limitations. This means that if they are used separately, they might lead to inadequate results. Thus, the combination of the three techniques can guarantee more accurate results. <ref name="Pmi" /> (p.28)

''' 1.2 Risk description'''

The description of the identified risks is a very important component of the risk identification process. It is a way to make sure that the risks are well communicated and understood among all the stakeholders. <ref name="ppp"> Guide to Using a Risk Register, Stephanie Ray, https://www.projectmanager.com/blog/guide-using-risk-register Accessed on 19/02/2020 </ref> For instance, in a construction problem, it is identified that a potential risk could be a shock in the economy. A potential explanation is that a shock in the economy could increase the price of raw materials and as a result the project might exceed the agreed budget. As it could be observed, the description of this risk could give a better insight into what this change might impact.

=== 2. How to assess the risks ===
The assessment of the various risks could be applied by using two methods, namely, the qualitative and quantitative risk analysis. Both methods are used to evaluate risks’ importance to the project. This includes an analysis of the probability that each risk has to occur and the impact that they might have on the project. <ref name="Pmi" /> In this article, the assessment of the identified risks is following the ''‘’ Practice Standard for Project Risk Management‘’ '' and the''‘’ PMBOK guide ‘’ ''.

* '''Qualitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

In qualitative risk analysis, the risks are evaluated and ranked based on their probability, impact, and some other characteristics that have been defined before the implementation of the analysis. This analysis is implemented regularly as new threats might need to be identified. The basic components of qualitative risk analysis are the high or low probability of a risk to happen and the consequences that it might have in ''‘’ one or more project objectives such as schedule, cost, quality, or performance.’’'' <ref name="ot" /> (p.423) Additionally, in qualitative risk analysis the risks can be grouped based on various criteria. For example, they can be grouped by risks that might exceed projects’ deadlines. This way, the project management team could monitor the risks in a more effective way since not only they will know the project areas they need to pay more attention to, but they will also have a quicker response managing the threats of the several categories.

* '''Quantitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

The quantitative risk analysis is used to calculate risks’ effects on the project. While this numerical analysis is not considered vital for all the projects, it provides more pragmatistic results. The implementation of the quantitative risk analysis follows on from the qualitative risk analysis. This could be explained by the fact that in the qualitative risk analysis the risks are already prioritized and thus the most vital threats are recognized and could be calculated. The impact and the probability are calculated, and the risk register table can be updated with numerical results.

=== 3. How to respond to the risks ===

It is of utmost importance to tackle the identified risks once they have been assessed. In order to do so, it is necessary to perform a risk management plan which will include the actions for dealing with the risks and the person who is responsible to tackle them. As a first step the risks should be known by all the stakeholders. Every potential risk is assigned to the right people. These people are called risk owners and they are responsible with controlling and finding solutions for the risks they are assigned with. The risks could harm the project in various ways and for this reason, there should be a plan with responses for all of them.<ref name="Pmi" /> In the ''‘Practice Standard for Project Risk Management’'' it is written that ''’’ the planning entails agreeing upon the actions to be taken and the potential changes to the budget, schedule, resources, and scope which these actions might cause.’’'' <ref name="Pmi" /> (p.43) Furthermore, the actions that have to be taken for every risk should be developed at the very early stage of its identification. In other words, it is integral to have the strategies and responses in advance so that project’s time schedule will change as little as possible. <ref name="Pmi" /> The risk register includes all the responses and actions on its table. Once new risks are identified risk register is updated with new strategies that the risk owner has to follow. Moreover, throughout the lifecycle of a project, it is possible to make adjustments and corrections to the plans of the previously identified risks. <ref name="ppp" />

=== 4. How to monitor the risks ===

Risk monitoring is the last process that needs to be implemented in order to fill in the risk register table. This final step is as important as the three steps mentioned above. Risk should be monitored throughout the life cycle of a project. It is a continuous process that includes the actions that have to be taken in order to control not only the risks that already have been identified but also the new threats that have to be tamed. <ref name="Pmi" />. <ref name="ot" /> Additionally, risk monitoring is used to certify that all the risk responses are taken place when there is a need for action. This is a way to appraise the effectiveness of the responses and the risk owner in the risk management process. <ref name="Pmi" /> The process starts by checking the risk register table. The table should include the appropriate responses for every risk, otherwise, it has to be updated with the new actions that have to be taken.<ref name="Pmi" /> Moreover, it is important for the new actions and changes to be well communicated to the stakeholders and to the people responsible for that specific risks. The number of information varies at the different stages of a project. More information is available to the project managers as the project continues its processes, which means that changes can be made in the risk register. These changes will be defined during the monitoring process and will be updated and documented in the risk register by providing new information for the actions that have to be changed. <ref name="Pmi" />

In this article, three techniques are analyzed for controlling the risks. These techniques are analyzed in the ''‘PMBOK guide ’'' <ref name="ot" /> (p.456-457) :

* '''Data analysis''': This technique is used to ensure that the reserves of the project are enough to not threaten its budget and the deadlines. <ref name="ot" /> More specifically, this analysis is checking if the reserves that a project has as a backup is enough to ensure that it will have the resources to manage an unexpected event that will make its budget and time exceed the agreed limits. <ref name="Pmi" />

* '''Audits''': This method applied in order to evaluate the performance of the processes included in the risk management and hence they are recorded in the risk register. It is worth noting that this way of monitoring risks can be conducted during project meetings when the project team examines the risks. <ref name="ot" />

* '''Meetings''': During meetings, the project management team can evaluate the various risks. This is a vital process that examines the overall process of risk management planning. More specifically, the meeting can ensure that all the stakeholders have a clear overview of the risks that need to be tackled. Furthermore, it is possible that some of the identified risks happened in the past, and through the meeting, the project management team can communicate the learning outcomes and mistakes that they should avoid in the future. <ref name="ot" />

After these processes, the risk register framework is updated with the new data in order to assist the project management team with the risk management process.

==Reflections==
While many positive outcomes can arise from the use of the risk register framework, there are also some limitations that are worth mentioning. In this section, the advantages and limitations of the risk register framework are discussed.
=== Advantages ===
The risk register is used to document information about the various risks that have been identified not only at the very early stages but also throughout the whole lifecycle of the project. This is an extremely beneficial characteristic of the tool that can be used for the assessment of a project's performance as well as for the strategic and decision-making processes that are related to risk management. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> More specifically, as the project is developing, the amount of gathered information is growing which means that new risks will be identified to threaten the project's success. The risk register table is storing the information from the risks that already have been identified and evaluated, and once new treats have been found, the table is expanded with the new data. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> This could be vital for the overall success of the project since the new risk could be well communicated among the stakeholders and thus they will be informed for the new actions they have to take in order to eliminate the negative impact of the threats. Additionally, the table includes information that is the output of the qualitative risk analysis. In other words, in the qualitative analysis, it is examined how possible is for a risk to take place and the impact that it will have on the project. This analysis is used to prioritize the risks based on their importance. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> Once the risks are ranked, the stakeholders are informed of the threats that they have to pay more attention to. This means that they might have to spend more time planning a strategy around these risks as they will have a higher impact. Finally, the risk register is an advantageous tool for complex projects. When a project is very complex, it's important to use tools that could break down the planning processes. Risk register, due to its structure, provides the needed information for every risk from the moment it is identified. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref>

=== Limitations ===
The identified risks are listed based on the critical way of thinking of the people who are associated with the risk evaluation. This could be a limitation since the results on the risk register table might reflect the personal opinion of the people who implemented it and not the reality.<ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref> <ref name="fd"> Why risk registers don't do enough to help you manage risks, https://www.civilsociety.co.uk/finance/why-risk-registers-don-t-do-enough-to-help-you-manage-risks.html, Accessed on 22/02/2020 </ref> Moreover, the development of the risk register table requires a lot of time in order to insert the data from the four processes. Apart from that since the table is updated when changes are made either to the list of the identified risks or to the actions that have to be taken, it is possible that mistakes might occur when the new data are imported. Hence, the implementation of the documented results of the risk register seeks attention in order to avoid mistakes. However, the risk register is more than important when it comes to analysing the risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> This means that even though it is a time-consuming process, the outcomes of the tool can prevent threats that otherwise could have a negative impact on the project.

It is worth noting, that ignoring the limitations of the risk management tool could have a negative impact on the project. Nevertheless, it is a very important tool that should be applied in the risk management processes most or all of the time.

==Annotated bibliography==
* '' "Practice standard for project risk management." Project Management Institute, 2009.''
This book is based on the PMBOK Guide– Fourth Edition. It is a book about the risk management processes that a project has to follow. It analyses the techniques for the identification, assessment, responding, and controlling of the risks. In this book, the reader can find information for the risk register model and how it is involved in all the previously mentioned processes. Although the book provides many details of how to manage risks, it does not illustrate the risk register table. For this reason, the visualization of the table in this article is based on the theoretical outcomes of the book and not on the graphical illustrations included in it.

* ''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017)''
This book is focused on how to manage projects based on PRINCE2 principles. It describes the activities that a project needs based on its implementation stage. Risks analysis is also explained in one of the chapters of the book. In this book, the various stages of the risk management process are explained by providing the needing theory and figures. The design of figure 1 of the article is inspired by one of the illustrations of the book. However, the risk register model is also not illustrated in one of the pages of the book and that could be considered as a negative point.

* ''Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017)''
The book A guide to the Project Management Body of Knowledge provides detailed information on how to manage projects. The risk register framework is analyzed in the chapters of the book by providing information on the usage of the tool in the various processes of risk management.

Moreover, it is explained the characteristics that should be involved in the risk register table. The study of the various techniques that are used in the risk management planning of the article is based on the analysis of this book.

==References==
<references/>

Risk Register analysis

2021-02-28T18:03:15Z

Dorothea Georgiadou: /* Annotated bibliography */

Developed by Dorothea Georgiadou

In an age where the economic, social, and political environment is constantly shifting, there is an urgent need to study the risks that may threaten the success of a project. It is particularly important to study the risks that may adversely affect the project and lead to events that might have as a consequence the exceeding of the agreed budget and time. For this reason, the risk management planning should identify and describe in detail the potential risks by providing the needed information for the actions that should be done for eliminating their negative impact. The high uncertainty that exists in projects necessitates the use of a management tool that will control the risks. <ref name="Pmi"> Project Mangement Institute. "Practice standard for project risk management." Project Management Institute, 2009. </ref> In this article the risk management framework ‘’Risk register’’ is explained. The risk register is a tool that covers and studies many aspects of risk management processes. More specifically, the aim of this article is to explain how this tool can be used to document the outcomes of the risk management processes. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013, Retrieved from:https://www.researchgate.net/publication/263528336_Risk_register_developement_and_implementation_for_construction_projects </ref> The article provides a description of the tool along with the reasons that it should be used. It is a framework that aims to record the information from the processes related to the identification, assessment, responding, and monitoring of potential risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. Finally, the article analyzes along with the benefits also the limitations of this risk management tool.

== Why use risk register? ==
In an ever-changing environment, a projects’ success is associated with a high level of uncertainty. In the ‘Practice Standard for Project Risk Management’, risk management is an approach that plays a vital role in the strategic and decision-making processes since adjustments in the project management planning can be done after the identification of the projects’ challenges. The risk register framework is used to support the risk management process in order to eliminate the negative impact that the various threats might have on a project. Threats could come from the external and internal environment of the company. The external risks are associated with the economic, social, political, and technological environment, while the internal threats include risks that are related to human actions and estimations. For example, it is possible for people to make wrong estimations because of inexperience and underestimation of some threats. This high level of uncertainty makes it increasingly necessary to use a model that assists the risk management process in a more effective way. <ref name="Pmi" /> <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>.
=== The role of Risk Register ===
In ''‘Practice Standard for Project Risk Management’'', the risk register is defined as the framework that is used in project risk management for the documentation of the identified risks. <ref name="Pmi" /> It records all the needed information that will be the steppingstone to overcome the risks that might menace projects' success. <ref name="Pmi" /> It is worth noting that based on ''‘PRINCE2’'', the risks are divided into threats and opportunities. Threats are the risks that could have negative consequences for the project, while opportunities could bring positive outcomes to the company. <ref name="PRINCE"> Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017) Retrieved from: https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=4863041</ref> The article is mainly focused on the documentation of the various threats in the risk register. The importance of the tool is highlighted in the fact that it can assist project managers with tackling potential threats and to have a better and clearer overview of the internal and external risks that might negatively affect the success of the project. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref> The aim of the risk register is to record information related to the identification, assessment, evaluation of importance, and managing of the potential risks. <ref name="Pmi" /> <ref name="PRINCE" /> More specifically, the uncertainty that exists in projects makes it necessary to use a model that provides various information for the events that could threaten the projects. <ref name="Pmi" />

In the ''‘PMBOK guide ’ ''it is outlined that the tool risk register can be used in different phases of a project. Firstly, it can be used at a very early stage of a project in order to provide information for the risks that might be a threat. Secondly, as the project continues, new threats are recorded and documented in the risk register. In other words, it is used to update the new risks and inform the risk owners how they should monitor the new threats. Finally, it documents all the risks that have been recorded after the completion of a project. <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>

=== Elements of Risk Register===

As can be seen in figure 1, the implementation of the risk register model follows four processes. Firstly, the risks have to be identified. Secondly, they have to be assessed based on their impact and probability. After risk assessment, it is important to define the actions that must be taken, in order to manage the risks. The final process of the risk register model follows, deals with the ways the risks can be monitored. <ref name="Pmi" /> <ref name="ot" /> <ref name="PRINCE"/> The outcome of the previously mentioned processes is the input for the risk register framework.

[[File:Screenshot 2021-02-25 221935.png‎|center|thumb|310px|Figure 1: Implementation steps of Risk Register (own figure, based on <ref name="Pmi" /> and <ref name="PRINCE"/>) ]]

Risk register has the form of a table where each column represents different characteristics of the potential risks.<ref name="latvia"> Project Risk Register Analysis Based on the Theoretical Analysis of Project Management Notion of Risk, Juris Uzulāns, University of Latvia, 2016 Retrieved from: https://content.sciendo.com/configurable/contentpage/journals$002feb$002f29$002f1$002farticle-p43.xml </ref> In order to start building the risk register the first step is the identification of the risks. Once the potential threats are known it is vital to provide a brief description for each one. <ref name="Pmi" /> This helps the project managers not only to clarify the risks but also to understand why they are threatening the project’s success. Secondly, for the assessment of the risks, their probability and impact on the project are examined. Furthermore, in'' ‘Practice Standard for Project Risk Management’'' it is stated that the evaluation of the risk is depending on their impact and their frequency to happen.<ref name="Pmi" /> For instance, the risks that have high impact and probability to occur, are risks with higher importance than the risks with low frequency and impact. The identification of the risks’ importance is an essential element for project managers to know which risks are needed more attention and time for setting up a plan in order to overcome them. <ref name="Pmi" /> Furthermore, based on the ''‘PMBOK guide’'' the risk register also includes information about the person who must tackle every risk and the actions that he has to take to eliminate its negative consequences. <ref name="ot" /> Finally, the risks should be monitored in order to prevent unexpected events. <ref name="Pmi" /> The above elements are demanding high attention as they are mainly focused on dominant areas of the risk management process which are the identification of the threats, the evaluation of their importance, and the course of action that should be taken.
[[File:table1111.png‎|center|thumb|600px|Figure 2: Risk Register table (own figure, based on <ref name="Pmi" /> and <ref name="PRINCE"/>) ]]

==How Risk register is used ? ==
In order to have an in-depth understanding of the risk register, it is of utmost importance to analyse the way that it can be used. The tool aims to eliminate the negative impacts of the various threats by identifying, assessing, evaluating, and monitoring them. The following sections provide a guidance on how the four processes of risk register can be implemented.
=== 1. How to identify the risks ===
As a first step, the risks have to be identified by using the right techniques. Once this is complete, a short description of the risks that have been identified through the risk management process is provided.

''' 1.1 Risk identification '''

As it is quoted in ''‘Practice Standard for Project Risk Management’'', ''‘’ A risk cannot be managed unless it is first identified.’’'' <ref name="Pmi" /> (p.25) The identified risks are the first information that will be used in the risk register. <ref name="Pmi" /> <ref name="ot" /> It is worth noting that the risk identification process is continuous because as time passes, the number of information increases. In other words, new risks will become knowable by repeating the risk identification process in different phases of a project. <ref name="Pmi" />

In this article, three methods are used for the risk identification process and all of them are following the ''‘Practice Standard for Project Risk Management’'' <ref name="Pmi" /> (p.28):

*'''''Historical review''''': This technique is used as an analysis of events that happened in the past. When this method, is used it is vital to make sure that the events that are under observation are correlated with risks that happened before in this project or in different projects from the same or different company. This method demands attention as there is the risk to compare data and risks from projects that are not closely connected to the project.
* '''''Current Assessment''''': In this method, the risk identification process is focused on analysing the project’s uncertainty based on the information that is known in this specific period of time.
*''''' Creativity Techniques''''': This approach is based on the creativity of the people who participate in the project. To be more specific, stakeholders have the chance to work individually or with other people in order to identify risks by using creative methods and thinking outside of the box.

All of the techniques mentioned above have both strong points and limitations. This means that if they are used separately, they might lead to inadequate results. Thus, the combination of the three techniques can guarantee more accurate results. <ref name="Pmi" /> (p.28)

''' 1.2 Risk description'''

The description of the identified risks is a very important component of the risk identification process. It is a way to make sure that the risks are well communicated and understood among all the stakeholders. <ref name="ppp"> Guide to Using a Risk Register, Stephanie Ray, https://www.projectmanager.com/blog/guide-using-risk-register Accessed on 19/02/2020 </ref> For instance, in a construction problem, it is identified that a potential risk could be a shock in the economy. A potential explanation is that a shock in the economy could increase the price of raw materials and as a result the project might exceed the agreed budget. As it could be observed, the description of this risk could give a better insight into what this change might impact.

=== 2. How to assess the risks ===
The assessment of the various risks could be applied by using two methods, namely, the qualitative and quantitative risk analysis. Both methods are used to evaluate risks’ importance to the project. This includes an analysis of the probability that each risk has to occur and the impact that they might have on the project. <ref name="Pmi" /> In this article, the assessment of the identified risks is following the ''‘’ Practice Standard for Project Risk Management‘’ '' and the''‘’ PMBOK guide ‘’ ''.

* '''Qualitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

In qualitative risk analysis, the risks are evaluated and ranked based on their probability, impact, and some other characteristics that have been defined before the implementation of the analysis. This analysis is implemented regularly as new threats might need to be identified. The basic components of qualitative risk analysis are the high or low probability of a risk to happen and the consequences that it might have in ''‘’ one or more project objectives such as schedule, cost, quality, or performance.’’'' <ref name="ot" /> (p.423) Additionally, in qualitative risk analysis the risks can be grouped based on various criteria. For example, they can be grouped by risks that might exceed projects’ deadlines. This way, the project management team could monitor the risks in a more effective way since not only they will know the project areas they need to pay more attention to, but they will also have a quicker response managing the threats of the several categories.

* '''Quantitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

The quantitative risk analysis is used to calculate risks’ effects on the project. While this numerical analysis is not considered vital for all the projects, it provides more pragmatistic results. The implementation of the quantitative risk analysis follows on from the qualitative risk analysis. This could be explained by the fact that in the qualitative risk analysis the risks are already prioritized and thus the most vital threats are recognized and could be calculated. The impact and the probability are calculated, and the risk register table can be updated with numerical results.

=== 3. How to respond to the risks ===

It is of utmost importance to tackle the identified risks once they have been assessed. In order to do so, it is necessary to perform a risk management plan which will include the actions for dealing with the risks and the person who is responsible to tackle them. As a first step the risks should be known by all the stakeholders. Every potential risk is assigned to the right people. These people are called risk owners and they are responsible with controlling and finding solutions for the risks they are assigned with. The risks could harm the project in various ways and for this reason, there should be a plan with responses for all of them.<ref name="Pmi" /> In the ''‘Practice Standard for Project Risk Management’'' it is written that ''’’ the planning entails agreeing upon the actions to be taken and the potential changes to the budget, schedule, resources, and scope which these actions might cause.’’'' <ref name="Pmi" /> (p.43) Furthermore, the actions that have to be taken for every risk should be developed at the very early stage of its identification. In other words, it is integral to have the strategies and responses in advance so that project’s time schedule will change as little as possible. <ref name="Pmi" /> The risk register includes all the responses and actions on its table. Once new risks are identified risk register is updated with new strategies that the risk owner has to follow. Moreover, throughout the lifecycle of a project, it is possible to make adjustments and corrections to the plans of the previously identified risks. <ref name="ppp" />

=== 4. How to monitor the risks ===

Risk monitoring is the last process that needs to be implemented in order to fill in the risk register table. This final step is as important as the three steps mentioned above. Risk should be monitored throughout the life cycle of a project. It is a continuous process that includes the actions that have to be taken in order to control not only the risks that already have been identified but also the new threats that have to be tamed. <ref name="Pmi" />. <ref name="ot" /> Additionally, risk monitoring is used to certify that all the risk responses are taken place when there is a need for action. This is a way to appraise the effectiveness of the responses and the risk owner in the risk management process. <ref name="Pmi" /> The process starts by checking the risk register table. The table should include the appropriate responses for every risk, otherwise, it has to be updated with the new actions that have to be taken.<ref name="Pmi" /> Moreover, it is important for the new actions and changes to be well communicated to the stakeholders and to the people responsible for that specific risks. The number of information varies at the different stages of a project. More information is available to the project managers as the project continues its processes, which means that changes can be made in the risk register. These changes will be defined during the monitoring process and will be updated and documented in the risk register by providing new information for the actions that have to be changed. <ref name="Pmi" />

In this article, three techniques are analyzed for controlling the risks. These techniques are analyzed in the ''‘PMBOK guide ’'' <ref name="ot" /> (p.456-457) :

* '''Data analysis''': This technique is used to ensure that the reserves of the project are enough to not threaten its budget and the deadlines. <ref name="ot" /> More specifically, this analysis is checking if the reserves that a project has as a backup is enough to ensure that it will have the resources to manage an unexpected event that will make its budget and time exceed the agreed limits. <ref name="Pmi" />

* '''Audits''': This method applied in order to evaluate the performance of the processes included in the risk management and hence they are recorded in the risk register. It is worth noting that this way of monitoring risks can be conducted during project meetings when the project team examines the risks. <ref name="ot" />

* '''Meetings''': During meetings, the project management team can evaluate the various risks. This is a vital process that examines the overall process of risk management planning. More specifically, the meeting can ensure that all the stakeholders have a clear overview of the risks that need to be tackled. Furthermore, it is possible that some of the identified risks happened in the past, and through the meeting, the project management team can communicate the learning outcomes and mistakes that they should avoid in the future. <ref name="ot" />

After these processes, the risk register framework is updated with the new data in order to assist the project management team with the risk management process.

==Reflections==
While many positive outcomes can arise from the use of the risk register framework, there are also some limitations that are worth mentioning. In this section, the advantages and limitations of the risk register framework are discussed.
=== Advantages ===
The risk register is used to document information about the various risks that have been identified not only at the very early stages but also throughout the whole lifecycle of the project. This is an extremely beneficial characteristic of the tool that can be used for the assessment of a project's performance as well as for the strategic and decision-making processes that are related to risk management. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> More specifically, as the project is developing, the amount of gathered information is growing which means that new risks will be identified to threaten the project's success. The risk register table is storing the information from the risks that already have been identified and evaluated, and once new treats have been found, the table is expanded with the new data. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> This could be vital for the overall success of the project since the new risk could be well communicated among the stakeholders and thus they will be informed for the new actions they have to take in order to eliminate the negative impact of the threats. Additionally, the table includes information that is the output of the qualitative risk analysis. In other words, in the qualitative analysis, it is examined how possible is for a risk to take place and the impact that it will have on the project. This analysis is used to prioritize the risks based on their importance. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> Once the risks are ranked, the stakeholders are informed of the threats that they have to pay more attention to. This means that they might have to spend more time planning a strategy around these risks as they will have a higher impact. Finally, the risk register is an advantageous tool for complex projects. When a project is very complex, it's important to use tools that could break down the planning processes. Risk register, due to its structure, provides the needed information for every risk from the moment it is identified. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref>

=== Limitations ===
The identified risks are listed based on the critical way of thinking of the people who are associated with the risk evaluation. This could be a limitation since the results on the risk register table might reflect the personal opinion of the people who implemented it and not the reality.<ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref> <ref name="fd"> Why risk registers don't do enough to help you manage risks, https://www.civilsociety.co.uk/finance/why-risk-registers-don-t-do-enough-to-help-you-manage-risks.html, Accessed on 22/02/2020 </ref> Moreover, the development of the risk register table requires a lot of time in order to insert the data from the four processes. Apart from that since the table is updated when changes are made either to the list of the identified risks or to the actions that have to be taken, it is possible that mistakes might occur when the new data are imported. Hence, the implementation of the documented results of the risk register seeks attention in order to avoid mistakes. However, the risk register is more than important when it comes to analysing the risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> This means that even though it is a time-consuming process, the outcomes of the tool can prevent threats that otherwise could have a negative impact on the project.

It is worth noting, that ignoring the limitations of the risk management tool could have a negative impact on the project. Nevertheless, it is a very important tool that should be applied in the risk management processes most or all of the time.

==Annotated bibliography==
* '' "Practice standard for project risk management." Project Management Institute, 2009.''
This book is based on the PMBOK Guide– Fourth Edition. It is a book about the risk management processes that a project has to follow. It analyses the techniques for the identification, assessment, responding, and controlling of the risks. In this book, the reader can find information for the risk register model and how it is involved in all the previously mentioned processes. Although the book provides many details of how to manage risks, it does not illustrate the risk register table. For this reason, the visualization of the table in this article is based on the theoretical outcomes of the book and not on the graphical illustrations included in it.

* ''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017)''
This book is focused on how to manage projects based on PRINCE2 principles. It describes how the different activities of a product based on its implementation stage. Risks analysis is also explained in one of the chapters of the book. In this book, the various stages of the risk management process are explained by providing the needing theory and well-explained figures.

* ''Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017)''
The book A guide to the Project Management Body of Knowledge provides detailed information on how to manage projects. The risk register framework is analyzed in the chapters of the book by providing information on the usage of the tool in the various processes of risk management. Moreover, it is explained the characteristics that should be involved in the risk register table. The study of the various techniques that are used in the risk management planning of the article is based on the analysis of this book.

==References==
<references/>

Risk Register analysis

2021-02-28T17:38:13Z

Dorothea Georgiadou: /* Limitations */

Developed by Dorothea Georgiadou

In an age where the economic, social, and political environment is constantly shifting, there is an urgent need to study the risks that may threaten the success of a project. It is particularly important to study the risks that may adversely affect the project and lead to events that might have as a consequence the exceeding of the agreed budget and time. For this reason, the risk management planning should identify and describe in detail the potential risks by providing the needed information for the actions that should be done for eliminating their negative impact. The high uncertainty that exists in projects necessitates the use of a management tool that will control the risks. <ref name="Pmi"> Project Mangement Institute. "Practice standard for project risk management." Project Management Institute, 2009. </ref> In this article the risk management framework ‘’Risk register’’ is explained. The risk register is a tool that covers and studies many aspects of risk management processes. More specifically, the aim of this article is to explain how this tool can be used to document the outcomes of the risk management processes. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013, Retrieved from:https://www.researchgate.net/publication/263528336_Risk_register_developement_and_implementation_for_construction_projects </ref> The article provides a description of the tool along with the reasons that it should be used. It is a framework that aims to record the information from the processes related to the identification, assessment, responding, and monitoring of potential risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. Finally, the article analyzes along with the benefits also the limitations of this risk management tool.

== Why use risk register? ==
In an ever-changing environment, a projects’ success is associated with a high level of uncertainty. In the ‘Practice Standard for Project Risk Management’, risk management is an approach that plays a vital role in the strategic and decision-making processes since adjustments in the project management planning can be done after the identification of the projects’ challenges. The risk register framework is used to support the risk management process in order to eliminate the negative impact that the various threats might have on a project. Threats could come from the external and internal environment of the company. The external risks are associated with the economic, social, political, and technological environment, while the internal threats include risks that are related to human actions and estimations. For example, it is possible for people to make wrong estimations because of inexperience and underestimation of some threats. This high level of uncertainty makes it increasingly necessary to use a model that assists the risk management process in a more effective way. <ref name="Pmi" /> <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>.
=== The role of Risk Register ===
In ''‘Practice Standard for Project Risk Management’'', the risk register is defined as the framework that is used in project risk management for the documentation of the identified risks. <ref name="Pmi" /> It records all the needed information that will be the steppingstone to overcome the risks that might menace projects' success. <ref name="Pmi" /> It is worth noting that based on ''‘PRINCE2’'', the risks are divided into threats and opportunities. Threats are the risks that could have negative consequences for the project, while opportunities could bring positive outcomes to the company. <ref name="PRINCE"> Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017) Retrieved from: https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=4863041</ref> The article is mainly focused on the documentation of the various threats in the risk register. The importance of the tool is highlighted in the fact that it can assist project managers with tackling potential threats and to have a better and clearer overview of the internal and external risks that might negatively affect the success of the project. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref> The aim of the risk register is to record information related to the identification, assessment, evaluation of importance, and managing of the potential risks. <ref name="Pmi" /> <ref name="PRINCE" /> More specifically, the uncertainty that exists in projects makes it necessary to use a model that provides various information for the events that could threaten the projects. <ref name="Pmi" />

In the ''‘PMBOK guide ’ ''it is outlined that the tool risk register can be used in different phases of a project. Firstly, it can be used at a very early stage of a project in order to provide information for the risks that might be a threat. Secondly, as the project continues, new threats are recorded and documented in the risk register. In other words, it is used to update the new risks and inform the risk owners how they should monitor the new threats. Finally, it documents all the risks that have been recorded after the completion of a project. <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>

=== Elements of Risk Register===

As can be seen in figure 1, the implementation of the risk register model follows four processes. Firstly, the risks have to be identified. Secondly, they have to be assessed based on their impact and probability. After risk assessment, it is important to define the actions that must be taken, in order to manage the risks. The final process of the risk register model follows, deals with the ways the risks can be monitored. <ref name="Pmi" /> <ref name="ot" /> <ref name="PRINCE"/> The outcome of the previously mentioned processes is the input for the risk register framework.

[[File:Screenshot 2021-02-25 221935.png‎|center|thumb|310px|Figure 1: Implementation steps of Risk Register (own figure, based on <ref name="Pmi" /> and <ref name="PRINCE"/>) ]]

Risk register has the form of a table where each column represents different characteristics of the potential risks.<ref name="latvia"> Project Risk Register Analysis Based on the Theoretical Analysis of Project Management Notion of Risk, Juris Uzulāns, University of Latvia, 2016 Retrieved from: https://content.sciendo.com/configurable/contentpage/journals$002feb$002f29$002f1$002farticle-p43.xml </ref> In order to start building the risk register the first step is the identification of the risks. Once the potential threats are known it is vital to provide a brief description for each one. <ref name="Pmi" /> This helps the project managers not only to clarify the risks but also to understand why they are threatening the project’s success. Secondly, for the assessment of the risks, their probability and impact on the project are examined. Furthermore, in'' ‘Practice Standard for Project Risk Management’'' it is stated that the evaluation of the risk is depending on their impact and their frequency to happen.<ref name="Pmi" /> For instance, the risks that have high impact and probability to occur, are risks with higher importance than the risks with low frequency and impact. The identification of the risks’ importance is an essential element for project managers to know which risks are needed more attention and time for setting up a plan in order to overcome them. <ref name="Pmi" /> Furthermore, based on the ''‘PMBOK guide’'' the risk register also includes information about the person who must tackle every risk and the actions that he has to take to eliminate its negative consequences. <ref name="ot" /> Finally, the risks should be monitored in order to prevent unexpected events. <ref name="Pmi" /> The above elements are demanding high attention as they are mainly focused on dominant areas of the risk management process which are the identification of the threats, the evaluation of their importance, and the course of action that should be taken.
[[File:table1111.png‎|center|thumb|600px|Figure 2: Risk Register table (own figure, based on <ref name="Pmi" /> and <ref name="PRINCE"/>) ]]

==How Risk register is used ? ==
In order to have an in-depth understanding of the risk register, it is of utmost importance to analyse the way that it can be used. The tool aims to eliminate the negative impacts of the various threats by identifying, assessing, evaluating, and monitoring them. The following sections provide a guidance on how the four processes of risk register can be implemented.
=== 1. How to identify the risks ===
As a first step, the risks have to be identified by using the right techniques. Once this is complete, a short description of the risks that have been identified through the risk management process is provided.

''' 1.1 Risk identification '''

As it is quoted in ''‘Practice Standard for Project Risk Management’'', ''‘’ A risk cannot be managed unless it is first identified.’’'' <ref name="Pmi" /> (p.25) The identified risks are the first information that will be used in the risk register. <ref name="Pmi" /> <ref name="ot" /> It is worth noting that the risk identification process is continuous because as time passes, the number of information increases. In other words, new risks will become knowable by repeating the risk identification process in different phases of a project. <ref name="Pmi" />

In this article, three methods are used for the risk identification process and all of them are following the ''‘Practice Standard for Project Risk Management’'' <ref name="Pmi" /> (p.28):

*'''''Historical review''''': This technique is used as an analysis of events that happened in the past. When this method, is used it is vital to make sure that the events that are under observation are correlated with risks that happened before in this project or in different projects from the same or different company. This method demands attention as there is the risk to compare data and risks from projects that are not closely connected to the project.
* '''''Current Assessment''''': In this method, the risk identification process is focused on analysing the project’s uncertainty based on the information that is known in this specific period of time.
*''''' Creativity Techniques''''': This approach is based on the creativity of the people who participate in the project. To be more specific, stakeholders have the chance to work individually or with other people in order to identify risks by using creative methods and thinking outside of the box.

All of the techniques mentioned above have both strong points and limitations. This means that if they are used separately, they might lead to inadequate results. Thus, the combination of the three techniques can guarantee more accurate results. <ref name="Pmi" /> (p.28)

''' 1.2 Risk description'''

The description of the identified risks is a very important component of the risk identification process. It is a way to make sure that the risks are well communicated and understood among all the stakeholders. <ref name="ppp"> Guide to Using a Risk Register, Stephanie Ray, https://www.projectmanager.com/blog/guide-using-risk-register Accessed on 19/02/2020 </ref> For instance, in a construction problem, it is identified that a potential risk could be a shock in the economy. A potential explanation is that a shock in the economy could increase the price of raw materials and as a result the project might exceed the agreed budget. As it could be observed, the description of this risk could give a better insight into what this change might impact.

=== 2. How to assess the risks ===
The assessment of the various risks could be applied by using two methods, namely, the qualitative and quantitative risk analysis. Both methods are used to evaluate risks’ importance to the project. This includes an analysis of the probability that each risk has to occur and the impact that they might have on the project. <ref name="Pmi" /> In this article, the assessment of the identified risks is following the ''‘’ Practice Standard for Project Risk Management‘’ '' and the''‘’ PMBOK guide ‘’ ''.

* '''Qualitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

In qualitative risk analysis, the risks are evaluated and ranked based on their probability, impact, and some other characteristics that have been defined before the implementation of the analysis. This analysis is implemented regularly as new threats might need to be identified. The basic components of qualitative risk analysis are the high or low probability of a risk to happen and the consequences that it might have in ''‘’ one or more project objectives such as schedule, cost, quality, or performance.’’'' <ref name="ot" /> (p.423) Additionally, in qualitative risk analysis the risks can be grouped based on various criteria. For example, they can be grouped by risks that might exceed projects’ deadlines. This way, the project management team could monitor the risks in a more effective way since not only they will know the project areas they need to pay more attention to, but they will also have a quicker response managing the threats of the several categories.

* '''Quantitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

The quantitative risk analysis is used to calculate risks’ effects on the project. While this numerical analysis is not considered vital for all the projects, it provides more pragmatistic results. The implementation of the quantitative risk analysis follows on from the qualitative risk analysis. This could be explained by the fact that in the qualitative risk analysis the risks are already prioritized and thus the most vital threats are recognized and could be calculated. The impact and the probability are calculated, and the risk register table can be updated with numerical results.

=== 3. How to respond to the risks ===

It is of utmost importance to tackle the identified risks once they have been assessed. In order to do so, it is necessary to perform a risk management plan which will include the actions for dealing with the risks and the person who is responsible to tackle them. As a first step the risks should be known by all the stakeholders. Every potential risk is assigned to the right people. These people are called risk owners and they are responsible with controlling and finding solutions for the risks they are assigned with. The risks could harm the project in various ways and for this reason, there should be a plan with responses for all of them.<ref name="Pmi" /> In the ''‘Practice Standard for Project Risk Management’'' it is written that ''’’ the planning entails agreeing upon the actions to be taken and the potential changes to the budget, schedule, resources, and scope which these actions might cause.’’'' <ref name="Pmi" /> (p.43) Furthermore, the actions that have to be taken for every risk should be developed at the very early stage of its identification. In other words, it is integral to have the strategies and responses in advance so that project’s time schedule will change as little as possible. <ref name="Pmi" /> The risk register includes all the responses and actions on its table. Once new risks are identified risk register is updated with new strategies that the risk owner has to follow. Moreover, throughout the lifecycle of a project, it is possible to make adjustments and corrections to the plans of the previously identified risks. <ref name="ppp" />

=== 4. How to monitor the risks ===

Risk monitoring is the last process that needs to be implemented in order to fill in the risk register table. This final step is as important as the three steps mentioned above. Risk should be monitored throughout the life cycle of a project. It is a continuous process that includes the actions that have to be taken in order to control not only the risks that already have been identified but also the new threats that have to be tamed. <ref name="Pmi" />. <ref name="ot" /> Additionally, risk monitoring is used to certify that all the risk responses are taken place when there is a need for action. This is a way to appraise the effectiveness of the responses and the risk owner in the risk management process. <ref name="Pmi" /> The process starts by checking the risk register table. The table should include the appropriate responses for every risk, otherwise, it has to be updated with the new actions that have to be taken.<ref name="Pmi" /> Moreover, it is important for the new actions and changes to be well communicated to the stakeholders and to the people responsible for that specific risks. The number of information varies at the different stages of a project. More information is available to the project managers as the project continues its processes, which means that changes can be made in the risk register. These changes will be defined during the monitoring process and will be updated and documented in the risk register by providing new information for the actions that have to be changed. <ref name="Pmi" />

In this article, three techniques are analyzed for controlling the risks. These techniques are analyzed in the ''‘PMBOK guide ’'' <ref name="ot" /> (p.456-457) :

* '''Data analysis''': This technique is used to ensure that the reserves of the project are enough to not threaten its budget and the deadlines. <ref name="ot" /> More specifically, this analysis is checking if the reserves that a project has as a backup is enough to ensure that it will have the resources to manage an unexpected event that will make its budget and time exceed the agreed limits. <ref name="Pmi" />

* '''Audits''': This method applied in order to evaluate the performance of the processes included in the risk management and hence they are recorded in the risk register. It is worth noting that this way of monitoring risks can be conducted during project meetings when the project team examines the risks. <ref name="ot" />

* '''Meetings''': During meetings, the project management team can evaluate the various risks. This is a vital process that examines the overall process of risk management planning. More specifically, the meeting can ensure that all the stakeholders have a clear overview of the risks that need to be tackled. Furthermore, it is possible that some of the identified risks happened in the past, and through the meeting, the project management team can communicate the learning outcomes and mistakes that they should avoid in the future. <ref name="ot" />

After these processes, the risk register framework is updated with the new data in order to assist the project management team with the risk management process.

==Reflections==
While many positive outcomes can arise from the use of the risk register framework, there are also some limitations that are worth mentioning. In this section, the advantages and limitations of the risk register framework are discussed.
=== Advantages ===
The risk register is used to document information about the various risks that have been identified not only at the very early stages but also throughout the whole lifecycle of the project. This is an extremely beneficial characteristic of the tool that can be used for the assessment of a project's performance as well as for the strategic and decision-making processes that are related to risk management. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> More specifically, as the project is developing, the amount of gathered information is growing which means that new risks will be identified to threaten the project's success. The risk register table is storing the information from the risks that already have been identified and evaluated, and once new treats have been found, the table is expanded with the new data. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> This could be vital for the overall success of the project since the new risk could be well communicated among the stakeholders and thus they will be informed for the new actions they have to take in order to eliminate the negative impact of the threats. Additionally, the table includes information that is the output of the qualitative risk analysis. In other words, in the qualitative analysis, it is examined how possible is for a risk to take place and the impact that it will have on the project. This analysis is used to prioritize the risks based on their importance. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> Once the risks are ranked, the stakeholders are informed of the threats that they have to pay more attention to. This means that they might have to spend more time planning a strategy around these risks as they will have a higher impact. Finally, the risk register is an advantageous tool for complex projects. When a project is very complex, it's important to use tools that could break down the planning processes. Risk register, due to its structure, provides the needed information for every risk from the moment it is identified. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref>

=== Limitations ===
The identified risks are listed based on the critical way of thinking of the people who are associated with the risk evaluation. This could be a limitation since the results on the risk register table might reflect the personal opinion of the people who implemented it and not the reality.<ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref> <ref name="fd"> Why risk registers don't do enough to help you manage risks, https://www.civilsociety.co.uk/finance/why-risk-registers-don-t-do-enough-to-help-you-manage-risks.html, Accessed on 22/02/2020 </ref> Moreover, the development of the risk register table requires a lot of time in order to insert the data from the four processes. Apart from that since the table is updated when changes are made either to the list of the identified risks or to the actions that have to be taken, it is possible that mistakes might occur when the new data are imported. Hence, the implementation of the documented results of the risk register seeks attention in order to avoid mistakes. However, the risk register is more than important when it comes to analysing the risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> This means that even though it is a time-consuming process, the outcomes of the tool can prevent threats that otherwise could have a negative impact on the project.

It is worth noting, that ignoring the limitations of the risk management tool could have a negative impact on the project. Nevertheless, it is a very important tool that should be applied in the risk management processes most or all of the time.

==Annotated bibliography==
* ''PMI Standard for Risk Management (2019)''
This book is based on the PMBOK Guide– Fourth Edition. It is a book about the risk management processes that a project has to follow. It analyses the techniques for the identification, assessment, response, and controlling of the risks. In this book, the reader can find information for the risk register model and how it is involved in all the previously mentioned processes.

* ''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017)''
This book is focused on how to manage projects based on PRINCE2 principles. It describes how the different activities of a product based on its implementation stage. Risks analysis is also explained in one of the chapters of the book. In this book, the various stages of the risk management process are explained by providing the needing theory and well-explained figures.

* ''Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017)''
The book A guide to the Project Management Body of Knowledge provides detailed information on how to manage projects. The risk register framework is analyzed in the chapters of the book by providing information on the usage of the tool in the various processes of risk management. Moreover, it is explained the characteristics that should be involved in the risk register table. The study of the various techniques that are used in the risk management planning of the article is based on the analysis of this book.

==References==
<references/>

Risk Register analysis

2021-02-28T17:37:57Z

Dorothea Georgiadou: /* Advantages */

Developed by Dorothea Georgiadou

In an age where the economic, social, and political environment is constantly shifting, there is an urgent need to study the risks that may threaten the success of a project. It is particularly important to study the risks that may adversely affect the project and lead to events that might have as a consequence the exceeding of the agreed budget and time. For this reason, the risk management planning should identify and describe in detail the potential risks by providing the needed information for the actions that should be done for eliminating their negative impact. The high uncertainty that exists in projects necessitates the use of a management tool that will control the risks. <ref name="Pmi"> Project Mangement Institute. "Practice standard for project risk management." Project Management Institute, 2009. </ref> In this article the risk management framework ‘’Risk register’’ is explained. The risk register is a tool that covers and studies many aspects of risk management processes. More specifically, the aim of this article is to explain how this tool can be used to document the outcomes of the risk management processes. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013, Retrieved from:https://www.researchgate.net/publication/263528336_Risk_register_developement_and_implementation_for_construction_projects </ref> The article provides a description of the tool along with the reasons that it should be used. It is a framework that aims to record the information from the processes related to the identification, assessment, responding, and monitoring of potential risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. Finally, the article analyzes along with the benefits also the limitations of this risk management tool.

== Why use risk register? ==
In an ever-changing environment, a projects’ success is associated with a high level of uncertainty. In the ‘Practice Standard for Project Risk Management’, risk management is an approach that plays a vital role in the strategic and decision-making processes since adjustments in the project management planning can be done after the identification of the projects’ challenges. The risk register framework is used to support the risk management process in order to eliminate the negative impact that the various threats might have on a project. Threats could come from the external and internal environment of the company. The external risks are associated with the economic, social, political, and technological environment, while the internal threats include risks that are related to human actions and estimations. For example, it is possible for people to make wrong estimations because of inexperience and underestimation of some threats. This high level of uncertainty makes it increasingly necessary to use a model that assists the risk management process in a more effective way. <ref name="Pmi" /> <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>.
=== The role of Risk Register ===
In ''‘Practice Standard for Project Risk Management’'', the risk register is defined as the framework that is used in project risk management for the documentation of the identified risks. <ref name="Pmi" /> It records all the needed information that will be the steppingstone to overcome the risks that might menace projects' success. <ref name="Pmi" /> It is worth noting that based on ''‘PRINCE2’'', the risks are divided into threats and opportunities. Threats are the risks that could have negative consequences for the project, while opportunities could bring positive outcomes to the company. <ref name="PRINCE"> Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017) Retrieved from: https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=4863041</ref> The article is mainly focused on the documentation of the various threats in the risk register. The importance of the tool is highlighted in the fact that it can assist project managers with tackling potential threats and to have a better and clearer overview of the internal and external risks that might negatively affect the success of the project. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref> The aim of the risk register is to record information related to the identification, assessment, evaluation of importance, and managing of the potential risks. <ref name="Pmi" /> <ref name="PRINCE" /> More specifically, the uncertainty that exists in projects makes it necessary to use a model that provides various information for the events that could threaten the projects. <ref name="Pmi" />

In the ''‘PMBOK guide ’ ''it is outlined that the tool risk register can be used in different phases of a project. Firstly, it can be used at a very early stage of a project in order to provide information for the risks that might be a threat. Secondly, as the project continues, new threats are recorded and documented in the risk register. In other words, it is used to update the new risks and inform the risk owners how they should monitor the new threats. Finally, it documents all the risks that have been recorded after the completion of a project. <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>

=== Elements of Risk Register===

As can be seen in figure 1, the implementation of the risk register model follows four processes. Firstly, the risks have to be identified. Secondly, they have to be assessed based on their impact and probability. After risk assessment, it is important to define the actions that must be taken, in order to manage the risks. The final process of the risk register model follows, deals with the ways the risks can be monitored. <ref name="Pmi" /> <ref name="ot" /> <ref name="PRINCE"/> The outcome of the previously mentioned processes is the input for the risk register framework.

[[File:Screenshot 2021-02-25 221935.png‎|center|thumb|310px|Figure 1: Implementation steps of Risk Register (own figure, based on <ref name="Pmi" /> and <ref name="PRINCE"/>) ]]

Risk register has the form of a table where each column represents different characteristics of the potential risks.<ref name="latvia"> Project Risk Register Analysis Based on the Theoretical Analysis of Project Management Notion of Risk, Juris Uzulāns, University of Latvia, 2016 Retrieved from: https://content.sciendo.com/configurable/contentpage/journals$002feb$002f29$002f1$002farticle-p43.xml </ref> In order to start building the risk register the first step is the identification of the risks. Once the potential threats are known it is vital to provide a brief description for each one. <ref name="Pmi" /> This helps the project managers not only to clarify the risks but also to understand why they are threatening the project’s success. Secondly, for the assessment of the risks, their probability and impact on the project are examined. Furthermore, in'' ‘Practice Standard for Project Risk Management’'' it is stated that the evaluation of the risk is depending on their impact and their frequency to happen.<ref name="Pmi" /> For instance, the risks that have high impact and probability to occur, are risks with higher importance than the risks with low frequency and impact. The identification of the risks’ importance is an essential element for project managers to know which risks are needed more attention and time for setting up a plan in order to overcome them. <ref name="Pmi" /> Furthermore, based on the ''‘PMBOK guide’'' the risk register also includes information about the person who must tackle every risk and the actions that he has to take to eliminate its negative consequences. <ref name="ot" /> Finally, the risks should be monitored in order to prevent unexpected events. <ref name="Pmi" /> The above elements are demanding high attention as they are mainly focused on dominant areas of the risk management process which are the identification of the threats, the evaluation of their importance, and the course of action that should be taken.
[[File:table1111.png‎|center|thumb|600px|Figure 2: Risk Register table (own figure, based on <ref name="Pmi" /> and <ref name="PRINCE"/>) ]]

==How Risk register is used ? ==
In order to have an in-depth understanding of the risk register, it is of utmost importance to analyse the way that it can be used. The tool aims to eliminate the negative impacts of the various threats by identifying, assessing, evaluating, and monitoring them. The following sections provide a guidance on how the four processes of risk register can be implemented.
=== 1. How to identify the risks ===
As a first step, the risks have to be identified by using the right techniques. Once this is complete, a short description of the risks that have been identified through the risk management process is provided.

''' 1.1 Risk identification '''

As it is quoted in ''‘Practice Standard for Project Risk Management’'', ''‘’ A risk cannot be managed unless it is first identified.’’'' <ref name="Pmi" /> (p.25) The identified risks are the first information that will be used in the risk register. <ref name="Pmi" /> <ref name="ot" /> It is worth noting that the risk identification process is continuous because as time passes, the number of information increases. In other words, new risks will become knowable by repeating the risk identification process in different phases of a project. <ref name="Pmi" />

In this article, three methods are used for the risk identification process and all of them are following the ''‘Practice Standard for Project Risk Management’'' <ref name="Pmi" /> (p.28):

*'''''Historical review''''': This technique is used as an analysis of events that happened in the past. When this method, is used it is vital to make sure that the events that are under observation are correlated with risks that happened before in this project or in different projects from the same or different company. This method demands attention as there is the risk to compare data and risks from projects that are not closely connected to the project.
* '''''Current Assessment''''': In this method, the risk identification process is focused on analysing the project’s uncertainty based on the information that is known in this specific period of time.
*''''' Creativity Techniques''''': This approach is based on the creativity of the people who participate in the project. To be more specific, stakeholders have the chance to work individually or with other people in order to identify risks by using creative methods and thinking outside of the box.

All of the techniques mentioned above have both strong points and limitations. This means that if they are used separately, they might lead to inadequate results. Thus, the combination of the three techniques can guarantee more accurate results. <ref name="Pmi" /> (p.28)

''' 1.2 Risk description'''

The description of the identified risks is a very important component of the risk identification process. It is a way to make sure that the risks are well communicated and understood among all the stakeholders. <ref name="ppp"> Guide to Using a Risk Register, Stephanie Ray, https://www.projectmanager.com/blog/guide-using-risk-register Accessed on 19/02/2020 </ref> For instance, in a construction problem, it is identified that a potential risk could be a shock in the economy. A potential explanation is that a shock in the economy could increase the price of raw materials and as a result the project might exceed the agreed budget. As it could be observed, the description of this risk could give a better insight into what this change might impact.

=== 2. How to assess the risks ===
The assessment of the various risks could be applied by using two methods, namely, the qualitative and quantitative risk analysis. Both methods are used to evaluate risks’ importance to the project. This includes an analysis of the probability that each risk has to occur and the impact that they might have on the project. <ref name="Pmi" /> In this article, the assessment of the identified risks is following the ''‘’ Practice Standard for Project Risk Management‘’ '' and the''‘’ PMBOK guide ‘’ ''.

* '''Qualitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

In qualitative risk analysis, the risks are evaluated and ranked based on their probability, impact, and some other characteristics that have been defined before the implementation of the analysis. This analysis is implemented regularly as new threats might need to be identified. The basic components of qualitative risk analysis are the high or low probability of a risk to happen and the consequences that it might have in ''‘’ one or more project objectives such as schedule, cost, quality, or performance.’’'' <ref name="ot" /> (p.423) Additionally, in qualitative risk analysis the risks can be grouped based on various criteria. For example, they can be grouped by risks that might exceed projects’ deadlines. This way, the project management team could monitor the risks in a more effective way since not only they will know the project areas they need to pay more attention to, but they will also have a quicker response managing the threats of the several categories.

* '''Quantitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

The quantitative risk analysis is used to calculate risks’ effects on the project. While this numerical analysis is not considered vital for all the projects, it provides more pragmatistic results. The implementation of the quantitative risk analysis follows on from the qualitative risk analysis. This could be explained by the fact that in the qualitative risk analysis the risks are already prioritized and thus the most vital threats are recognized and could be calculated. The impact and the probability are calculated, and the risk register table can be updated with numerical results.

=== 3. How to respond to the risks ===

It is of utmost importance to tackle the identified risks once they have been assessed. In order to do so, it is necessary to perform a risk management plan which will include the actions for dealing with the risks and the person who is responsible to tackle them. As a first step the risks should be known by all the stakeholders. Every potential risk is assigned to the right people. These people are called risk owners and they are responsible with controlling and finding solutions for the risks they are assigned with. The risks could harm the project in various ways and for this reason, there should be a plan with responses for all of them.<ref name="Pmi" /> In the ''‘Practice Standard for Project Risk Management’'' it is written that ''’’ the planning entails agreeing upon the actions to be taken and the potential changes to the budget, schedule, resources, and scope which these actions might cause.’’'' <ref name="Pmi" /> (p.43) Furthermore, the actions that have to be taken for every risk should be developed at the very early stage of its identification. In other words, it is integral to have the strategies and responses in advance so that project’s time schedule will change as little as possible. <ref name="Pmi" /> The risk register includes all the responses and actions on its table. Once new risks are identified risk register is updated with new strategies that the risk owner has to follow. Moreover, throughout the lifecycle of a project, it is possible to make adjustments and corrections to the plans of the previously identified risks. <ref name="ppp" />

=== 4. How to monitor the risks ===

Risk monitoring is the last process that needs to be implemented in order to fill in the risk register table. This final step is as important as the three steps mentioned above. Risk should be monitored throughout the life cycle of a project. It is a continuous process that includes the actions that have to be taken in order to control not only the risks that already have been identified but also the new threats that have to be tamed. <ref name="Pmi" />. <ref name="ot" /> Additionally, risk monitoring is used to certify that all the risk responses are taken place when there is a need for action. This is a way to appraise the effectiveness of the responses and the risk owner in the risk management process. <ref name="Pmi" /> The process starts by checking the risk register table. The table should include the appropriate responses for every risk, otherwise, it has to be updated with the new actions that have to be taken.<ref name="Pmi" /> Moreover, it is important for the new actions and changes to be well communicated to the stakeholders and to the people responsible for that specific risks. The number of information varies at the different stages of a project. More information is available to the project managers as the project continues its processes, which means that changes can be made in the risk register. These changes will be defined during the monitoring process and will be updated and documented in the risk register by providing new information for the actions that have to be changed. <ref name="Pmi" />

In this article, three techniques are analyzed for controlling the risks. These techniques are analyzed in the ''‘PMBOK guide ’'' <ref name="ot" /> (p.456-457) :

* '''Data analysis''': This technique is used to ensure that the reserves of the project are enough to not threaten its budget and the deadlines. <ref name="ot" /> More specifically, this analysis is checking if the reserves that a project has as a backup is enough to ensure that it will have the resources to manage an unexpected event that will make its budget and time exceed the agreed limits. <ref name="Pmi" />

* '''Audits''': This method applied in order to evaluate the performance of the processes included in the risk management and hence they are recorded in the risk register. It is worth noting that this way of monitoring risks can be conducted during project meetings when the project team examines the risks. <ref name="ot" />

* '''Meetings''': During meetings, the project management team can evaluate the various risks. This is a vital process that examines the overall process of risk management planning. More specifically, the meeting can ensure that all the stakeholders have a clear overview of the risks that need to be tackled. Furthermore, it is possible that some of the identified risks happened in the past, and through the meeting, the project management team can communicate the learning outcomes and mistakes that they should avoid in the future. <ref name="ot" />

After these processes, the risk register framework is updated with the new data in order to assist the project management team with the risk management process.

==Reflections==
While many positive outcomes can arise from the use of the risk register framework, there are also some limitations that are worth mentioning. In this section, the advantages and limitations of the risk register framework are discussed.
=== Advantages ===
The risk register is used to document information about the various risks that have been identified not only at the very early stages but also throughout the whole lifecycle of the project. This is an extremely beneficial characteristic of the tool that can be used for the assessment of a project's performance as well as for the strategic and decision-making processes that are related to risk management. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> More specifically, as the project is developing, the amount of gathered information is growing which means that new risks will be identified to threaten the project's success. The risk register table is storing the information from the risks that already have been identified and evaluated, and once new treats have been found, the table is expanded with the new data. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> This could be vital for the overall success of the project since the new risk could be well communicated among the stakeholders and thus they will be informed for the new actions they have to take in order to eliminate the negative impact of the threats. Additionally, the table includes information that is the output of the qualitative risk analysis. In other words, in the qualitative analysis, it is examined how possible is for a risk to take place and the impact that it will have on the project. This analysis is used to prioritize the risks based on their importance. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> <ref name="Pmi" /> Once the risks are ranked, the stakeholders are informed of the threats that they have to pay more attention to. This means that they might have to spend more time planning a strategy around these risks as they will have a higher impact. Finally, the risk register is an advantageous tool for complex projects. When a project is very complex, it's important to use tools that could break down the planning processes. Risk register, due to its structure, provides the needed information for every risk from the moment it is identified. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref>

=== Limitations ===
The identified risks are listed based on the critical way of thinking of the people who are associated with the risk evaluation. This could be a limitation since the results on the risk register table might reflect the personal opinion of the people who implemented it and not the reality.<ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>, <ref name="fd"> Why risk registers don't do enough to help you manage risks, https://www.civilsociety.co.uk/finance/why-risk-registers-don-t-do-enough-to-help-you-manage-risks.html, Accessed on 22/02/2020 </ref> Moreover, the development of the risk register table requires a lot of time in order to insert the data from the four processes. Apart from that since the table is updated when changes are made either to the list of the identified risks or to the actions that have to be taken, it is possible that mistakes might occur when the new data are imported. Hence, the implementation of the documented results of the risk register seeks attention in order to avoid mistakes. However, the risk register is more than important when it comes to analysing the risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> This means that even though it is a time-consuming process, the outcomes of the tool can prevent threats that otherwise could have a negative impact on the project.

It is worth noting, that ignoring the limitations of the risk management tool could have a negative impact on the project. Nevertheless, it is a very important tool that should be applied in the risk management processes most or all of the time.

==Annotated bibliography==
* ''PMI Standard for Risk Management (2019)''
This book is based on the PMBOK Guide– Fourth Edition. It is a book about the risk management processes that a project has to follow. It analyses the techniques for the identification, assessment, response, and controlling of the risks. In this book, the reader can find information for the risk register model and how it is involved in all the previously mentioned processes.

* ''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017)''
This book is focused on how to manage projects based on PRINCE2 principles. It describes how the different activities of a product based on its implementation stage. Risks analysis is also explained in one of the chapters of the book. In this book, the various stages of the risk management process are explained by providing the needing theory and well-explained figures.

* ''Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017)''
The book A guide to the Project Management Body of Knowledge provides detailed information on how to manage projects. The risk register framework is analyzed in the chapters of the book by providing information on the usage of the tool in the various processes of risk management. Moreover, it is explained the characteristics that should be involved in the risk register table. The study of the various techniques that are used in the risk management planning of the article is based on the analysis of this book.

==References==
<references/>

Risk Register analysis

2021-02-28T17:37:20Z

Dorothea Georgiadou: /* 2. How to assess the risks */

Developed by Dorothea Georgiadou

In an age where the economic, social, and political environment is constantly shifting, there is an urgent need to study the risks that may threaten the success of a project. It is particularly important to study the risks that may adversely affect the project and lead to events that might have as a consequence the exceeding of the agreed budget and time. For this reason, the risk management planning should identify and describe in detail the potential risks by providing the needed information for the actions that should be done for eliminating their negative impact. The high uncertainty that exists in projects necessitates the use of a management tool that will control the risks. <ref name="Pmi"> Project Mangement Institute. "Practice standard for project risk management." Project Management Institute, 2009. </ref> In this article the risk management framework ‘’Risk register’’ is explained. The risk register is a tool that covers and studies many aspects of risk management processes. More specifically, the aim of this article is to explain how this tool can be used to document the outcomes of the risk management processes. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013, Retrieved from:https://www.researchgate.net/publication/263528336_Risk_register_developement_and_implementation_for_construction_projects </ref> The article provides a description of the tool along with the reasons that it should be used. It is a framework that aims to record the information from the processes related to the identification, assessment, responding, and monitoring of potential risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. Finally, the article analyzes along with the benefits also the limitations of this risk management tool.

== Why use risk register? ==
In an ever-changing environment, a projects’ success is associated with a high level of uncertainty. In the ‘Practice Standard for Project Risk Management’, risk management is an approach that plays a vital role in the strategic and decision-making processes since adjustments in the project management planning can be done after the identification of the projects’ challenges. The risk register framework is used to support the risk management process in order to eliminate the negative impact that the various threats might have on a project. Threats could come from the external and internal environment of the company. The external risks are associated with the economic, social, political, and technological environment, while the internal threats include risks that are related to human actions and estimations. For example, it is possible for people to make wrong estimations because of inexperience and underestimation of some threats. This high level of uncertainty makes it increasingly necessary to use a model that assists the risk management process in a more effective way. <ref name="Pmi" /> <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>.
=== The role of Risk Register ===
In ''‘Practice Standard for Project Risk Management’'', the risk register is defined as the framework that is used in project risk management for the documentation of the identified risks. <ref name="Pmi" /> It records all the needed information that will be the steppingstone to overcome the risks that might menace projects' success. <ref name="Pmi" /> It is worth noting that based on ''‘PRINCE2’'', the risks are divided into threats and opportunities. Threats are the risks that could have negative consequences for the project, while opportunities could bring positive outcomes to the company. <ref name="PRINCE"> Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017) Retrieved from: https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=4863041</ref> The article is mainly focused on the documentation of the various threats in the risk register. The importance of the tool is highlighted in the fact that it can assist project managers with tackling potential threats and to have a better and clearer overview of the internal and external risks that might negatively affect the success of the project. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref> The aim of the risk register is to record information related to the identification, assessment, evaluation of importance, and managing of the potential risks. <ref name="Pmi" /> <ref name="PRINCE" /> More specifically, the uncertainty that exists in projects makes it necessary to use a model that provides various information for the events that could threaten the projects. <ref name="Pmi" />

In the ''‘PMBOK guide ’ ''it is outlined that the tool risk register can be used in different phases of a project. Firstly, it can be used at a very early stage of a project in order to provide information for the risks that might be a threat. Secondly, as the project continues, new threats are recorded and documented in the risk register. In other words, it is used to update the new risks and inform the risk owners how they should monitor the new threats. Finally, it documents all the risks that have been recorded after the completion of a project. <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>

=== Elements of Risk Register===

As can be seen in figure 1, the implementation of the risk register model follows four processes. Firstly, the risks have to be identified. Secondly, they have to be assessed based on their impact and probability. After risk assessment, it is important to define the actions that must be taken, in order to manage the risks. The final process of the risk register model follows, deals with the ways the risks can be monitored. <ref name="Pmi" /> <ref name="ot" /> <ref name="PRINCE"/> The outcome of the previously mentioned processes is the input for the risk register framework.

[[File:Screenshot 2021-02-25 221935.png‎|center|thumb|310px|Figure 1: Implementation steps of Risk Register (own figure, based on <ref name="Pmi" /> and <ref name="PRINCE"/>) ]]

Risk register has the form of a table where each column represents different characteristics of the potential risks.<ref name="latvia"> Project Risk Register Analysis Based on the Theoretical Analysis of Project Management Notion of Risk, Juris Uzulāns, University of Latvia, 2016 Retrieved from: https://content.sciendo.com/configurable/contentpage/journals$002feb$002f29$002f1$002farticle-p43.xml </ref> In order to start building the risk register the first step is the identification of the risks. Once the potential threats are known it is vital to provide a brief description for each one. <ref name="Pmi" /> This helps the project managers not only to clarify the risks but also to understand why they are threatening the project’s success. Secondly, for the assessment of the risks, their probability and impact on the project are examined. Furthermore, in'' ‘Practice Standard for Project Risk Management’'' it is stated that the evaluation of the risk is depending on their impact and their frequency to happen.<ref name="Pmi" /> For instance, the risks that have high impact and probability to occur, are risks with higher importance than the risks with low frequency and impact. The identification of the risks’ importance is an essential element for project managers to know which risks are needed more attention and time for setting up a plan in order to overcome them. <ref name="Pmi" /> Furthermore, based on the ''‘PMBOK guide’'' the risk register also includes information about the person who must tackle every risk and the actions that he has to take to eliminate its negative consequences. <ref name="ot" /> Finally, the risks should be monitored in order to prevent unexpected events. <ref name="Pmi" /> The above elements are demanding high attention as they are mainly focused on dominant areas of the risk management process which are the identification of the threats, the evaluation of their importance, and the course of action that should be taken.
[[File:table1111.png‎|center|thumb|600px|Figure 2: Risk Register table (own figure, based on <ref name="Pmi" /> and <ref name="PRINCE"/>) ]]

==How Risk register is used ? ==
In order to have an in-depth understanding of the risk register, it is of utmost importance to analyse the way that it can be used. The tool aims to eliminate the negative impacts of the various threats by identifying, assessing, evaluating, and monitoring them. The following sections provide a guidance on how the four processes of risk register can be implemented.
=== 1. How to identify the risks ===
As a first step, the risks have to be identified by using the right techniques. Once this is complete, a short description of the risks that have been identified through the risk management process is provided.

''' 1.1 Risk identification '''

As it is quoted in ''‘Practice Standard for Project Risk Management’'', ''‘’ A risk cannot be managed unless it is first identified.’’'' <ref name="Pmi" /> (p.25) The identified risks are the first information that will be used in the risk register. <ref name="Pmi" /> <ref name="ot" /> It is worth noting that the risk identification process is continuous because as time passes, the number of information increases. In other words, new risks will become knowable by repeating the risk identification process in different phases of a project. <ref name="Pmi" />

In this article, three methods are used for the risk identification process and all of them are following the ''‘Practice Standard for Project Risk Management’'' <ref name="Pmi" /> (p.28):

*'''''Historical review''''': This technique is used as an analysis of events that happened in the past. When this method, is used it is vital to make sure that the events that are under observation are correlated with risks that happened before in this project or in different projects from the same or different company. This method demands attention as there is the risk to compare data and risks from projects that are not closely connected to the project.
* '''''Current Assessment''''': In this method, the risk identification process is focused on analysing the project’s uncertainty based on the information that is known in this specific period of time.
*''''' Creativity Techniques''''': This approach is based on the creativity of the people who participate in the project. To be more specific, stakeholders have the chance to work individually or with other people in order to identify risks by using creative methods and thinking outside of the box.

All of the techniques mentioned above have both strong points and limitations. This means that if they are used separately, they might lead to inadequate results. Thus, the combination of the three techniques can guarantee more accurate results. <ref name="Pmi" /> (p.28)

''' 1.2 Risk description'''

The description of the identified risks is a very important component of the risk identification process. It is a way to make sure that the risks are well communicated and understood among all the stakeholders. <ref name="ppp"> Guide to Using a Risk Register, Stephanie Ray, https://www.projectmanager.com/blog/guide-using-risk-register Accessed on 19/02/2020 </ref> For instance, in a construction problem, it is identified that a potential risk could be a shock in the economy. A potential explanation is that a shock in the economy could increase the price of raw materials and as a result the project might exceed the agreed budget. As it could be observed, the description of this risk could give a better insight into what this change might impact.

=== 2. How to assess the risks ===
The assessment of the various risks could be applied by using two methods, namely, the qualitative and quantitative risk analysis. Both methods are used to evaluate risks’ importance to the project. This includes an analysis of the probability that each risk has to occur and the impact that they might have on the project. <ref name="Pmi" /> In this article, the assessment of the identified risks is following the ''‘’ Practice Standard for Project Risk Management‘’ '' and the''‘’ PMBOK guide ‘’ ''.

* '''Qualitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

In qualitative risk analysis, the risks are evaluated and ranked based on their probability, impact, and some other characteristics that have been defined before the implementation of the analysis. This analysis is implemented regularly as new threats might need to be identified. The basic components of qualitative risk analysis are the high or low probability of a risk to happen and the consequences that it might have in ''‘’ one or more project objectives such as schedule, cost, quality, or performance.’’'' <ref name="ot" /> (p.423) Additionally, in qualitative risk analysis the risks can be grouped based on various criteria. For example, they can be grouped by risks that might exceed projects’ deadlines. This way, the project management team could monitor the risks in a more effective way since not only they will know the project areas they need to pay more attention to, but they will also have a quicker response managing the threats of the several categories.

* '''Quantitative risk analysis''' <ref name="Pmi" /> <ref name="ot" />

The quantitative risk analysis is used to calculate risks’ effects on the project. While this numerical analysis is not considered vital for all the projects, it provides more pragmatistic results. The implementation of the quantitative risk analysis follows on from the qualitative risk analysis. This could be explained by the fact that in the qualitative risk analysis the risks are already prioritized and thus the most vital threats are recognized and could be calculated. The impact and the probability are calculated, and the risk register table can be updated with numerical results.

=== 3. How to respond to the risks ===

It is of utmost importance to tackle the identified risks once they have been assessed. In order to do so, it is necessary to perform a risk management plan which will include the actions for dealing with the risks and the person who is responsible to tackle them. As a first step the risks should be known by all the stakeholders. Every potential risk is assigned to the right people. These people are called risk owners and they are responsible with controlling and finding solutions for the risks they are assigned with. The risks could harm the project in various ways and for this reason, there should be a plan with responses for all of them.<ref name="Pmi" /> In the ''‘Practice Standard for Project Risk Management’'' it is written that ''’’ the planning entails agreeing upon the actions to be taken and the potential changes to the budget, schedule, resources, and scope which these actions might cause.’’'' <ref name="Pmi" /> (p.43) Furthermore, the actions that have to be taken for every risk should be developed at the very early stage of its identification. In other words, it is integral to have the strategies and responses in advance so that project’s time schedule will change as little as possible. <ref name="Pmi" /> The risk register includes all the responses and actions on its table. Once new risks are identified risk register is updated with new strategies that the risk owner has to follow. Moreover, throughout the lifecycle of a project, it is possible to make adjustments and corrections to the plans of the previously identified risks. <ref name="ppp" />

=== 4. How to monitor the risks ===

Risk monitoring is the last process that needs to be implemented in order to fill in the risk register table. This final step is as important as the three steps mentioned above. Risk should be monitored throughout the life cycle of a project. It is a continuous process that includes the actions that have to be taken in order to control not only the risks that already have been identified but also the new threats that have to be tamed. <ref name="Pmi" />. <ref name="ot" /> Additionally, risk monitoring is used to certify that all the risk responses are taken place when there is a need for action. This is a way to appraise the effectiveness of the responses and the risk owner in the risk management process. <ref name="Pmi" /> The process starts by checking the risk register table. The table should include the appropriate responses for every risk, otherwise, it has to be updated with the new actions that have to be taken.<ref name="Pmi" /> Moreover, it is important for the new actions and changes to be well communicated to the stakeholders and to the people responsible for that specific risks. The number of information varies at the different stages of a project. More information is available to the project managers as the project continues its processes, which means that changes can be made in the risk register. These changes will be defined during the monitoring process and will be updated and documented in the risk register by providing new information for the actions that have to be changed. <ref name="Pmi" />

In this article, three techniques are analyzed for controlling the risks. These techniques are analyzed in the ''‘PMBOK guide ’'' <ref name="ot" /> (p.456-457) :

* '''Data analysis''': This technique is used to ensure that the reserves of the project are enough to not threaten its budget and the deadlines. <ref name="ot" /> More specifically, this analysis is checking if the reserves that a project has as a backup is enough to ensure that it will have the resources to manage an unexpected event that will make its budget and time exceed the agreed limits. <ref name="Pmi" />

* '''Audits''': This method applied in order to evaluate the performance of the processes included in the risk management and hence they are recorded in the risk register. It is worth noting that this way of monitoring risks can be conducted during project meetings when the project team examines the risks. <ref name="ot" />

* '''Meetings''': During meetings, the project management team can evaluate the various risks. This is a vital process that examines the overall process of risk management planning. More specifically, the meeting can ensure that all the stakeholders have a clear overview of the risks that need to be tackled. Furthermore, it is possible that some of the identified risks happened in the past, and through the meeting, the project management team can communicate the learning outcomes and mistakes that they should avoid in the future. <ref name="ot" />

After these processes, the risk register framework is updated with the new data in order to assist the project management team with the risk management process.

==Reflections==
While many positive outcomes can arise from the use of the risk register framework, there are also some limitations that are worth mentioning. In this section, the advantages and limitations of the risk register framework are discussed.
=== Advantages ===
The risk register is used to document information about the various risks that have been identified not only at the very early stages but also throughout the whole lifecycle of the project. This is an extremely beneficial characteristic of the tool that can be used for the assessment of a project's performance as well as for the strategic and decision-making processes that are related to risk management. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> More specifically, as the project is developing, the amount of gathered information is growing which means that new risks will be identified to threaten the project's success. The risk register table is storing the information from the risks that already have been identified and evaluated, and once new treats have been found, the table is expanded with the new data. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>, <ref name="Pmi" /> This could be vital for the overall success of the project since the new risk could be well communicated among the stakeholders and thus they will be informed for the new actions they have to take in order to eliminate the negative impact of the threats. Additionally, the table includes information that is the output of the qualitative risk analysis. In other words, in the qualitative analysis, it is examined how possible is for a risk to take place and the impact that it will have on the project. This analysis is used to prioritize the risks based on their importance. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>, <ref name="Pmi" /> Once the risks are ranked, the stakeholders are informed of the threats that they have to pay more attention to. This means that they might have to spend more time planning a strategy around these risks as they will have a higher impact. Finally, the risk register is an advantageous tool for complex projects. When a project is very complex, it's important to use tools that could break down the planning processes. Risk register, due to its structure, provides the needed information for every risk from the moment it is identified. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref>

=== Limitations ===
The identified risks are listed based on the critical way of thinking of the people who are associated with the risk evaluation. This could be a limitation since the results on the risk register table might reflect the personal opinion of the people who implemented it and not the reality.<ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>, <ref name="fd"> Why risk registers don't do enough to help you manage risks, https://www.civilsociety.co.uk/finance/why-risk-registers-don-t-do-enough-to-help-you-manage-risks.html, Accessed on 22/02/2020 </ref> Moreover, the development of the risk register table requires a lot of time in order to insert the data from the four processes. Apart from that since the table is updated when changes are made either to the list of the identified risks or to the actions that have to be taken, it is possible that mistakes might occur when the new data are imported. Hence, the implementation of the documented results of the risk register seeks attention in order to avoid mistakes. However, the risk register is more than important when it comes to analysing the risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> This means that even though it is a time-consuming process, the outcomes of the tool can prevent threats that otherwise could have a negative impact on the project.

It is worth noting, that ignoring the limitations of the risk management tool could have a negative impact on the project. Nevertheless, it is a very important tool that should be applied in the risk management processes most or all of the time.

==Annotated bibliography==
* ''PMI Standard for Risk Management (2019)''
This book is based on the PMBOK Guide– Fourth Edition. It is a book about the risk management processes that a project has to follow. It analyses the techniques for the identification, assessment, response, and controlling of the risks. In this book, the reader can find information for the risk register model and how it is involved in all the previously mentioned processes.

* ''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017)''
This book is focused on how to manage projects based on PRINCE2 principles. It describes how the different activities of a product based on its implementation stage. Risks analysis is also explained in one of the chapters of the book. In this book, the various stages of the risk management process are explained by providing the needing theory and well-explained figures.

* ''Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017)''
The book A guide to the Project Management Body of Knowledge provides detailed information on how to manage projects. The risk register framework is analyzed in the chapters of the book by providing information on the usage of the tool in the various processes of risk management. Moreover, it is explained the characteristics that should be involved in the risk register table. The study of the various techniques that are used in the risk management planning of the article is based on the analysis of this book.

==References==
<references/>

Risk Register analysis

2021-02-28T17:36:58Z

Dorothea Georgiadou: /* 1. How to identify the risks */

Developed by Dorothea Georgiadou

In an age where the economic, social, and political environment is constantly shifting, there is an urgent need to study the risks that may threaten the success of a project. It is particularly important to study the risks that may adversely affect the project and lead to events that might have as a consequence the exceeding of the agreed budget and time. For this reason, the risk management planning should identify and describe in detail the potential risks by providing the needed information for the actions that should be done for eliminating their negative impact. The high uncertainty that exists in projects necessitates the use of a management tool that will control the risks. <ref name="Pmi"> Project Mangement Institute. "Practice standard for project risk management." Project Management Institute, 2009. </ref> In this article the risk management framework ‘’Risk register’’ is explained. The risk register is a tool that covers and studies many aspects of risk management processes. More specifically, the aim of this article is to explain how this tool can be used to document the outcomes of the risk management processes. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013, Retrieved from:https://www.researchgate.net/publication/263528336_Risk_register_developement_and_implementation_for_construction_projects </ref> The article provides a description of the tool along with the reasons that it should be used. It is a framework that aims to record the information from the processes related to the identification, assessment, responding, and monitoring of potential risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. Finally, the article analyzes along with the benefits also the limitations of this risk management tool.

== Why use risk register? ==
In an ever-changing environment, a projects’ success is associated with a high level of uncertainty. In the ‘Practice Standard for Project Risk Management’, risk management is an approach that plays a vital role in the strategic and decision-making processes since adjustments in the project management planning can be done after the identification of the projects’ challenges. The risk register framework is used to support the risk management process in order to eliminate the negative impact that the various threats might have on a project. Threats could come from the external and internal environment of the company. The external risks are associated with the economic, social, political, and technological environment, while the internal threats include risks that are related to human actions and estimations. For example, it is possible for people to make wrong estimations because of inexperience and underestimation of some threats. This high level of uncertainty makes it increasingly necessary to use a model that assists the risk management process in a more effective way. <ref name="Pmi" /> <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>.
=== The role of Risk Register ===
In ''‘Practice Standard for Project Risk Management’'', the risk register is defined as the framework that is used in project risk management for the documentation of the identified risks. <ref name="Pmi" /> It records all the needed information that will be the steppingstone to overcome the risks that might menace projects' success. <ref name="Pmi" /> It is worth noting that based on ''‘PRINCE2’'', the risks are divided into threats and opportunities. Threats are the risks that could have negative consequences for the project, while opportunities could bring positive outcomes to the company. <ref name="PRINCE"> Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017) Retrieved from: https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=4863041</ref> The article is mainly focused on the documentation of the various threats in the risk register. The importance of the tool is highlighted in the fact that it can assist project managers with tackling potential threats and to have a better and clearer overview of the internal and external risks that might negatively affect the success of the project. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref> The aim of the risk register is to record information related to the identification, assessment, evaluation of importance, and managing of the potential risks. <ref name="Pmi" /> <ref name="PRINCE" /> More specifically, the uncertainty that exists in projects makes it necessary to use a model that provides various information for the events that could threaten the projects. <ref name="Pmi" />

In the ''‘PMBOK guide ’ ''it is outlined that the tool risk register can be used in different phases of a project. Firstly, it can be used at a very early stage of a project in order to provide information for the risks that might be a threat. Secondly, as the project continues, new threats are recorded and documented in the risk register. In other words, it is used to update the new risks and inform the risk owners how they should monitor the new threats. Finally, it documents all the risks that have been recorded after the completion of a project. <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>

=== Elements of Risk Register===

As can be seen in figure 1, the implementation of the risk register model follows four processes. Firstly, the risks have to be identified. Secondly, they have to be assessed based on their impact and probability. After risk assessment, it is important to define the actions that must be taken, in order to manage the risks. The final process of the risk register model follows, deals with the ways the risks can be monitored. <ref name="Pmi" /> <ref name="ot" /> <ref name="PRINCE"/> The outcome of the previously mentioned processes is the input for the risk register framework.

[[File:Screenshot 2021-02-25 221935.png‎|center|thumb|310px|Figure 1: Implementation steps of Risk Register (own figure, based on <ref name="Pmi" /> and <ref name="PRINCE"/>) ]]

Risk register has the form of a table where each column represents different characteristics of the potential risks.<ref name="latvia"> Project Risk Register Analysis Based on the Theoretical Analysis of Project Management Notion of Risk, Juris Uzulāns, University of Latvia, 2016 Retrieved from: https://content.sciendo.com/configurable/contentpage/journals$002feb$002f29$002f1$002farticle-p43.xml </ref> In order to start building the risk register the first step is the identification of the risks. Once the potential threats are known it is vital to provide a brief description for each one. <ref name="Pmi" /> This helps the project managers not only to clarify the risks but also to understand why they are threatening the project’s success. Secondly, for the assessment of the risks, their probability and impact on the project are examined. Furthermore, in'' ‘Practice Standard for Project Risk Management’'' it is stated that the evaluation of the risk is depending on their impact and their frequency to happen.<ref name="Pmi" /> For instance, the risks that have high impact and probability to occur, are risks with higher importance than the risks with low frequency and impact. The identification of the risks’ importance is an essential element for project managers to know which risks are needed more attention and time for setting up a plan in order to overcome them. <ref name="Pmi" /> Furthermore, based on the ''‘PMBOK guide’'' the risk register also includes information about the person who must tackle every risk and the actions that he has to take to eliminate its negative consequences. <ref name="ot" /> Finally, the risks should be monitored in order to prevent unexpected events. <ref name="Pmi" /> The above elements are demanding high attention as they are mainly focused on dominant areas of the risk management process which are the identification of the threats, the evaluation of their importance, and the course of action that should be taken.
[[File:table1111.png‎|center|thumb|600px|Figure 2: Risk Register table (own figure, based on <ref name="Pmi" /> and <ref name="PRINCE"/>) ]]

==How Risk register is used ? ==
In order to have an in-depth understanding of the risk register, it is of utmost importance to analyse the way that it can be used. The tool aims to eliminate the negative impacts of the various threats by identifying, assessing, evaluating, and monitoring them. The following sections provide a guidance on how the four processes of risk register can be implemented.
=== 1. How to identify the risks ===
As a first step, the risks have to be identified by using the right techniques. Once this is complete, a short description of the risks that have been identified through the risk management process is provided.

''' 1.1 Risk identification '''

As it is quoted in ''‘Practice Standard for Project Risk Management’'', ''‘’ A risk cannot be managed unless it is first identified.’’'' <ref name="Pmi" /> (p.25) The identified risks are the first information that will be used in the risk register. <ref name="Pmi" /> <ref name="ot" /> It is worth noting that the risk identification process is continuous because as time passes, the number of information increases. In other words, new risks will become knowable by repeating the risk identification process in different phases of a project. <ref name="Pmi" />

In this article, three methods are used for the risk identification process and all of them are following the ''‘Practice Standard for Project Risk Management’'' <ref name="Pmi" /> (p.28):

*'''''Historical review''''': This technique is used as an analysis of events that happened in the past. When this method, is used it is vital to make sure that the events that are under observation are correlated with risks that happened before in this project or in different projects from the same or different company. This method demands attention as there is the risk to compare data and risks from projects that are not closely connected to the project.
* '''''Current Assessment''''': In this method, the risk identification process is focused on analysing the project’s uncertainty based on the information that is known in this specific period of time.
*''''' Creativity Techniques''''': This approach is based on the creativity of the people who participate in the project. To be more specific, stakeholders have the chance to work individually or with other people in order to identify risks by using creative methods and thinking outside of the box.

All of the techniques mentioned above have both strong points and limitations. This means that if they are used separately, they might lead to inadequate results. Thus, the combination of the three techniques can guarantee more accurate results. <ref name="Pmi" /> (p.28)

''' 1.2 Risk description'''

The description of the identified risks is a very important component of the risk identification process. It is a way to make sure that the risks are well communicated and understood among all the stakeholders. <ref name="ppp"> Guide to Using a Risk Register, Stephanie Ray, https://www.projectmanager.com/blog/guide-using-risk-register Accessed on 19/02/2020 </ref> For instance, in a construction problem, it is identified that a potential risk could be a shock in the economy. A potential explanation is that a shock in the economy could increase the price of raw materials and as a result the project might exceed the agreed budget. As it could be observed, the description of this risk could give a better insight into what this change might impact.

=== 2. How to assess the risks ===
The assessment of the various risks could be applied by using two methods, namely, the qualitative and quantitative risk analysis. Both methods are used to evaluate risks’ importance to the project. This includes an analysis of the probability that each risk has to occur and the impact that they might have on the project. <ref name="Pmi" /> In this article, the assessment of the identified risks is following the ''‘’ Practice Standard for Project Risk Management‘’ '' and the''‘’ PMBOK guide ‘’ ''.

* '''Qualitative risk analysis''' <ref name="Pmi" />,<ref name="ot" />

In qualitative risk analysis, the risks are evaluated and ranked based on their probability, impact, and some other characteristics that have been defined before the implementation of the analysis. This analysis is implemented regularly as new threats might need to be identified. The basic components of qualitative risk analysis are the high or low probability of a risk to happen and the consequences that it might have in ''‘’ one or more project objectives such as schedule, cost, quality, or performance.’’'' <ref name="ot" /> (p.423) Additionally, in qualitative risk analysis the risks can be grouped based on various criteria. For example, they can be grouped by risks that might exceed projects’ deadlines. This way, the project management team could monitor the risks in a more effective way since not only they will know the project areas they need to pay more attention to, but they will also have a quicker response managing the threats of the several categories.

* '''Quantitative risk analysis''' <ref name="Pmi" />,<ref name="ot" />

The quantitative risk analysis is used to calculate risks’ effects on the project. While this numerical analysis is not considered vital for all the projects, it provides more pragmatistic results. The implementation of the quantitative risk analysis follows on from the qualitative risk analysis. This could be explained by the fact that in the qualitative risk analysis the risks are already prioritized and thus the most vital threats are recognized and could be calculated. The impact and the probability are calculated, and the risk register table can be updated with numerical results.

=== 3. How to respond to the risks ===

It is of utmost importance to tackle the identified risks once they have been assessed. In order to do so, it is necessary to perform a risk management plan which will include the actions for dealing with the risks and the person who is responsible to tackle them. As a first step the risks should be known by all the stakeholders. Every potential risk is assigned to the right people. These people are called risk owners and they are responsible with controlling and finding solutions for the risks they are assigned with. The risks could harm the project in various ways and for this reason, there should be a plan with responses for all of them.<ref name="Pmi" /> In the ''‘Practice Standard for Project Risk Management’'' it is written that ''’’ the planning entails agreeing upon the actions to be taken and the potential changes to the budget, schedule, resources, and scope which these actions might cause.’’'' <ref name="Pmi" /> (p.43) Furthermore, the actions that have to be taken for every risk should be developed at the very early stage of its identification. In other words, it is integral to have the strategies and responses in advance so that project’s time schedule will change as little as possible. <ref name="Pmi" /> The risk register includes all the responses and actions on its table. Once new risks are identified risk register is updated with new strategies that the risk owner has to follow. Moreover, throughout the lifecycle of a project, it is possible to make adjustments and corrections to the plans of the previously identified risks. <ref name="ppp" />

=== 4. How to monitor the risks ===

Risk monitoring is the last process that needs to be implemented in order to fill in the risk register table. This final step is as important as the three steps mentioned above. Risk should be monitored throughout the life cycle of a project. It is a continuous process that includes the actions that have to be taken in order to control not only the risks that already have been identified but also the new threats that have to be tamed. <ref name="Pmi" />. <ref name="ot" /> Additionally, risk monitoring is used to certify that all the risk responses are taken place when there is a need for action. This is a way to appraise the effectiveness of the responses and the risk owner in the risk management process. <ref name="Pmi" /> The process starts by checking the risk register table. The table should include the appropriate responses for every risk, otherwise, it has to be updated with the new actions that have to be taken.<ref name="Pmi" /> Moreover, it is important for the new actions and changes to be well communicated to the stakeholders and to the people responsible for that specific risks. The number of information varies at the different stages of a project. More information is available to the project managers as the project continues its processes, which means that changes can be made in the risk register. These changes will be defined during the monitoring process and will be updated and documented in the risk register by providing new information for the actions that have to be changed. <ref name="Pmi" />

In this article, three techniques are analyzed for controlling the risks. These techniques are analyzed in the ''‘PMBOK guide ’'' <ref name="ot" /> (p.456-457) :

* '''Data analysis''': This technique is used to ensure that the reserves of the project are enough to not threaten its budget and the deadlines. <ref name="ot" /> More specifically, this analysis is checking if the reserves that a project has as a backup is enough to ensure that it will have the resources to manage an unexpected event that will make its budget and time exceed the agreed limits. <ref name="Pmi" />

* '''Audits''': This method applied in order to evaluate the performance of the processes included in the risk management and hence they are recorded in the risk register. It is worth noting that this way of monitoring risks can be conducted during project meetings when the project team examines the risks. <ref name="ot" />

* '''Meetings''': During meetings, the project management team can evaluate the various risks. This is a vital process that examines the overall process of risk management planning. More specifically, the meeting can ensure that all the stakeholders have a clear overview of the risks that need to be tackled. Furthermore, it is possible that some of the identified risks happened in the past, and through the meeting, the project management team can communicate the learning outcomes and mistakes that they should avoid in the future. <ref name="ot" />

After these processes, the risk register framework is updated with the new data in order to assist the project management team with the risk management process.

==Reflections==
While many positive outcomes can arise from the use of the risk register framework, there are also some limitations that are worth mentioning. In this section, the advantages and limitations of the risk register framework are discussed.
=== Advantages ===
The risk register is used to document information about the various risks that have been identified not only at the very early stages but also throughout the whole lifecycle of the project. This is an extremely beneficial characteristic of the tool that can be used for the assessment of a project's performance as well as for the strategic and decision-making processes that are related to risk management. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> More specifically, as the project is developing, the amount of gathered information is growing which means that new risks will be identified to threaten the project's success. The risk register table is storing the information from the risks that already have been identified and evaluated, and once new treats have been found, the table is expanded with the new data. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>, <ref name="Pmi" /> This could be vital for the overall success of the project since the new risk could be well communicated among the stakeholders and thus they will be informed for the new actions they have to take in order to eliminate the negative impact of the threats. Additionally, the table includes information that is the output of the qualitative risk analysis. In other words, in the qualitative analysis, it is examined how possible is for a risk to take place and the impact that it will have on the project. This analysis is used to prioritize the risks based on their importance. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>, <ref name="Pmi" /> Once the risks are ranked, the stakeholders are informed of the threats that they have to pay more attention to. This means that they might have to spend more time planning a strategy around these risks as they will have a higher impact. Finally, the risk register is an advantageous tool for complex projects. When a project is very complex, it's important to use tools that could break down the planning processes. Risk register, due to its structure, provides the needed information for every risk from the moment it is identified. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref>

=== Limitations ===
The identified risks are listed based on the critical way of thinking of the people who are associated with the risk evaluation. This could be a limitation since the results on the risk register table might reflect the personal opinion of the people who implemented it and not the reality.<ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>, <ref name="fd"> Why risk registers don't do enough to help you manage risks, https://www.civilsociety.co.uk/finance/why-risk-registers-don-t-do-enough-to-help-you-manage-risks.html, Accessed on 22/02/2020 </ref> Moreover, the development of the risk register table requires a lot of time in order to insert the data from the four processes. Apart from that since the table is updated when changes are made either to the list of the identified risks or to the actions that have to be taken, it is possible that mistakes might occur when the new data are imported. Hence, the implementation of the documented results of the risk register seeks attention in order to avoid mistakes. However, the risk register is more than important when it comes to analysing the risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> This means that even though it is a time-consuming process, the outcomes of the tool can prevent threats that otherwise could have a negative impact on the project.

It is worth noting, that ignoring the limitations of the risk management tool could have a negative impact on the project. Nevertheless, it is a very important tool that should be applied in the risk management processes most or all of the time.

==Annotated bibliography==
* ''PMI Standard for Risk Management (2019)''
This book is based on the PMBOK Guide– Fourth Edition. It is a book about the risk management processes that a project has to follow. It analyses the techniques for the identification, assessment, response, and controlling of the risks. In this book, the reader can find information for the risk register model and how it is involved in all the previously mentioned processes.

* ''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017)''
This book is focused on how to manage projects based on PRINCE2 principles. It describes how the different activities of a product based on its implementation stage. Risks analysis is also explained in one of the chapters of the book. In this book, the various stages of the risk management process are explained by providing the needing theory and well-explained figures.

* ''Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017)''
The book A guide to the Project Management Body of Knowledge provides detailed information on how to manage projects. The risk register framework is analyzed in the chapters of the book by providing information on the usage of the tool in the various processes of risk management. Moreover, it is explained the characteristics that should be involved in the risk register table. The study of the various techniques that are used in the risk management planning of the article is based on the analysis of this book.

==References==
<references/>

Risk Register analysis

2021-02-28T17:36:39Z

Dorothea Georgiadou: /* Elements of Risk Register */

Developed by Dorothea Georgiadou

In an age where the economic, social, and political environment is constantly shifting, there is an urgent need to study the risks that may threaten the success of a project. It is particularly important to study the risks that may adversely affect the project and lead to events that might have as a consequence the exceeding of the agreed budget and time. For this reason, the risk management planning should identify and describe in detail the potential risks by providing the needed information for the actions that should be done for eliminating their negative impact. The high uncertainty that exists in projects necessitates the use of a management tool that will control the risks. <ref name="Pmi"> Project Mangement Institute. "Practice standard for project risk management." Project Management Institute, 2009. </ref> In this article the risk management framework ‘’Risk register’’ is explained. The risk register is a tool that covers and studies many aspects of risk management processes. More specifically, the aim of this article is to explain how this tool can be used to document the outcomes of the risk management processes. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013, Retrieved from:https://www.researchgate.net/publication/263528336_Risk_register_developement_and_implementation_for_construction_projects </ref> The article provides a description of the tool along with the reasons that it should be used. It is a framework that aims to record the information from the processes related to the identification, assessment, responding, and monitoring of potential risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. Finally, the article analyzes along with the benefits also the limitations of this risk management tool.

== Why use risk register? ==
In an ever-changing environment, a projects’ success is associated with a high level of uncertainty. In the ‘Practice Standard for Project Risk Management’, risk management is an approach that plays a vital role in the strategic and decision-making processes since adjustments in the project management planning can be done after the identification of the projects’ challenges. The risk register framework is used to support the risk management process in order to eliminate the negative impact that the various threats might have on a project. Threats could come from the external and internal environment of the company. The external risks are associated with the economic, social, political, and technological environment, while the internal threats include risks that are related to human actions and estimations. For example, it is possible for people to make wrong estimations because of inexperience and underestimation of some threats. This high level of uncertainty makes it increasingly necessary to use a model that assists the risk management process in a more effective way. <ref name="Pmi" /> <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>.
=== The role of Risk Register ===
In ''‘Practice Standard for Project Risk Management’'', the risk register is defined as the framework that is used in project risk management for the documentation of the identified risks. <ref name="Pmi" /> It records all the needed information that will be the steppingstone to overcome the risks that might menace projects' success. <ref name="Pmi" /> It is worth noting that based on ''‘PRINCE2’'', the risks are divided into threats and opportunities. Threats are the risks that could have negative consequences for the project, while opportunities could bring positive outcomes to the company. <ref name="PRINCE"> Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017) Retrieved from: https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=4863041</ref> The article is mainly focused on the documentation of the various threats in the risk register. The importance of the tool is highlighted in the fact that it can assist project managers with tackling potential threats and to have a better and clearer overview of the internal and external risks that might negatively affect the success of the project. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref> The aim of the risk register is to record information related to the identification, assessment, evaluation of importance, and managing of the potential risks. <ref name="Pmi" /> <ref name="PRINCE" /> More specifically, the uncertainty that exists in projects makes it necessary to use a model that provides various information for the events that could threaten the projects. <ref name="Pmi" />

In the ''‘PMBOK guide ’ ''it is outlined that the tool risk register can be used in different phases of a project. Firstly, it can be used at a very early stage of a project in order to provide information for the risks that might be a threat. Secondly, as the project continues, new threats are recorded and documented in the risk register. In other words, it is used to update the new risks and inform the risk owners how they should monitor the new threats. Finally, it documents all the risks that have been recorded after the completion of a project. <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>

=== Elements of Risk Register===

As can be seen in figure 1, the implementation of the risk register model follows four processes. Firstly, the risks have to be identified. Secondly, they have to be assessed based on their impact and probability. After risk assessment, it is important to define the actions that must be taken, in order to manage the risks. The final process of the risk register model follows, deals with the ways the risks can be monitored. <ref name="Pmi" /> <ref name="ot" /> <ref name="PRINCE"/> The outcome of the previously mentioned processes is the input for the risk register framework.

[[File:Screenshot 2021-02-25 221935.png‎|center|thumb|310px|Figure 1: Implementation steps of Risk Register (own figure, based on <ref name="Pmi" /> and <ref name="PRINCE"/>) ]]

Risk register has the form of a table where each column represents different characteristics of the potential risks.<ref name="latvia"> Project Risk Register Analysis Based on the Theoretical Analysis of Project Management Notion of Risk, Juris Uzulāns, University of Latvia, 2016 Retrieved from: https://content.sciendo.com/configurable/contentpage/journals$002feb$002f29$002f1$002farticle-p43.xml </ref> In order to start building the risk register the first step is the identification of the risks. Once the potential threats are known it is vital to provide a brief description for each one. <ref name="Pmi" /> This helps the project managers not only to clarify the risks but also to understand why they are threatening the project’s success. Secondly, for the assessment of the risks, their probability and impact on the project are examined. Furthermore, in'' ‘Practice Standard for Project Risk Management’'' it is stated that the evaluation of the risk is depending on their impact and their frequency to happen.<ref name="Pmi" /> For instance, the risks that have high impact and probability to occur, are risks with higher importance than the risks with low frequency and impact. The identification of the risks’ importance is an essential element for project managers to know which risks are needed more attention and time for setting up a plan in order to overcome them. <ref name="Pmi" /> Furthermore, based on the ''‘PMBOK guide’'' the risk register also includes information about the person who must tackle every risk and the actions that he has to take to eliminate its negative consequences. <ref name="ot" /> Finally, the risks should be monitored in order to prevent unexpected events. <ref name="Pmi" /> The above elements are demanding high attention as they are mainly focused on dominant areas of the risk management process which are the identification of the threats, the evaluation of their importance, and the course of action that should be taken.
[[File:table1111.png‎|center|thumb|600px|Figure 2: Risk Register table (own figure, based on <ref name="Pmi" /> and <ref name="PRINCE"/>) ]]

==How Risk register is used ? ==
In order to have an in-depth understanding of the risk register, it is of utmost importance to analyse the way that it can be used. The tool aims to eliminate the negative impacts of the various threats by identifying, assessing, evaluating, and monitoring them. The following sections provide a guidance on how the four processes of risk register can be implemented.
=== 1. How to identify the risks ===
As a first step, the risks have to be identified by using the right techniques. Once this is complete, a short description of the risks that have been identified through the risk management process is provided.

''' 1.1 Risk identification '''

As it is quoted in ''‘Practice Standard for Project Risk Management’'', ''‘’ A risk cannot be managed unless it is first identified.’’'' <ref name="Pmi" /> (p.25) The identified risks are the first information that will be used in the risk register. <ref name="Pmi" />, <ref name="ot" /> It is worth noting that the risk identification process is continuous because as time passes, the number of information increases. In other words, new risks will become knowable by repeating the risk identification process in different phases of a project. <ref name="Pmi" />

In this article, three methods are used for the risk identification process and all of them are following the ''‘Practice Standard for Project Risk Management’'' <ref name="Pmi" /> (p.28):

*'''''Historical review''''': This technique is used as an analysis of events that happened in the past. When this method, is used it is vital to make sure that the events that are under observation are correlated with risks that happened before in this project or in different projects from the same or different company. This method demands attention as there is the risk to compare data and risks from projects that are not closely connected to the project.
* '''''Current Assessment''''': In this method, the risk identification process is focused on analysing the project’s uncertainty based on the information that is known in this specific period of time.
*''''' Creativity Techniques''''': This approach is based on the creativity of the people who participate in the project. To be more specific, stakeholders have the chance to work individually or with other people in order to identify risks by using creative methods and thinking outside of the box.

All of the techniques mentioned above have both strong points and limitations. This means that if they are used separately, they might lead to inadequate results. Thus, the combination of the three techniques can guarantee more accurate results. <ref name="Pmi" /> (p.28)

''' 1.2 Risk description'''

The description of the identified risks is a very important component of the risk identification process. It is a way to make sure that the risks are well communicated and understood among all the stakeholders. <ref name="ppp"> Guide to Using a Risk Register, Stephanie Ray, https://www.projectmanager.com/blog/guide-using-risk-register Accessed on 19/02/2020 </ref> For instance, in a construction problem, it is identified that a potential risk could be a shock in the economy. A potential explanation is that a shock in the economy could increase the price of raw materials and as a result the project might exceed the agreed budget. As it could be observed, the description of this risk could give a better insight into what this change might impact.

=== 2. How to assess the risks ===
The assessment of the various risks could be applied by using two methods, namely, the qualitative and quantitative risk analysis. Both methods are used to evaluate risks’ importance to the project. This includes an analysis of the probability that each risk has to occur and the impact that they might have on the project. <ref name="Pmi" /> In this article, the assessment of the identified risks is following the ''‘’ Practice Standard for Project Risk Management‘’ '' and the''‘’ PMBOK guide ‘’ ''.

* '''Qualitative risk analysis''' <ref name="Pmi" />,<ref name="ot" />

In qualitative risk analysis, the risks are evaluated and ranked based on their probability, impact, and some other characteristics that have been defined before the implementation of the analysis. This analysis is implemented regularly as new threats might need to be identified. The basic components of qualitative risk analysis are the high or low probability of a risk to happen and the consequences that it might have in ''‘’ one or more project objectives such as schedule, cost, quality, or performance.’’'' <ref name="ot" /> (p.423) Additionally, in qualitative risk analysis the risks can be grouped based on various criteria. For example, they can be grouped by risks that might exceed projects’ deadlines. This way, the project management team could monitor the risks in a more effective way since not only they will know the project areas they need to pay more attention to, but they will also have a quicker response managing the threats of the several categories.

* '''Quantitative risk analysis''' <ref name="Pmi" />,<ref name="ot" />

The quantitative risk analysis is used to calculate risks’ effects on the project. While this numerical analysis is not considered vital for all the projects, it provides more pragmatistic results. The implementation of the quantitative risk analysis follows on from the qualitative risk analysis. This could be explained by the fact that in the qualitative risk analysis the risks are already prioritized and thus the most vital threats are recognized and could be calculated. The impact and the probability are calculated, and the risk register table can be updated with numerical results.

=== 3. How to respond to the risks ===

It is of utmost importance to tackle the identified risks once they have been assessed. In order to do so, it is necessary to perform a risk management plan which will include the actions for dealing with the risks and the person who is responsible to tackle them. As a first step the risks should be known by all the stakeholders. Every potential risk is assigned to the right people. These people are called risk owners and they are responsible with controlling and finding solutions for the risks they are assigned with. The risks could harm the project in various ways and for this reason, there should be a plan with responses for all of them.<ref name="Pmi" /> In the ''‘Practice Standard for Project Risk Management’'' it is written that ''’’ the planning entails agreeing upon the actions to be taken and the potential changes to the budget, schedule, resources, and scope which these actions might cause.’’'' <ref name="Pmi" /> (p.43) Furthermore, the actions that have to be taken for every risk should be developed at the very early stage of its identification. In other words, it is integral to have the strategies and responses in advance so that project’s time schedule will change as little as possible. <ref name="Pmi" /> The risk register includes all the responses and actions on its table. Once new risks are identified risk register is updated with new strategies that the risk owner has to follow. Moreover, throughout the lifecycle of a project, it is possible to make adjustments and corrections to the plans of the previously identified risks. <ref name="ppp" />

=== 4. How to monitor the risks ===

Risk monitoring is the last process that needs to be implemented in order to fill in the risk register table. This final step is as important as the three steps mentioned above. Risk should be monitored throughout the life cycle of a project. It is a continuous process that includes the actions that have to be taken in order to control not only the risks that already have been identified but also the new threats that have to be tamed. <ref name="Pmi" />. <ref name="ot" /> Additionally, risk monitoring is used to certify that all the risk responses are taken place when there is a need for action. This is a way to appraise the effectiveness of the responses and the risk owner in the risk management process. <ref name="Pmi" /> The process starts by checking the risk register table. The table should include the appropriate responses for every risk, otherwise, it has to be updated with the new actions that have to be taken.<ref name="Pmi" /> Moreover, it is important for the new actions and changes to be well communicated to the stakeholders and to the people responsible for that specific risks. The number of information varies at the different stages of a project. More information is available to the project managers as the project continues its processes, which means that changes can be made in the risk register. These changes will be defined during the monitoring process and will be updated and documented in the risk register by providing new information for the actions that have to be changed. <ref name="Pmi" />

In this article, three techniques are analyzed for controlling the risks. These techniques are analyzed in the ''‘PMBOK guide ’'' <ref name="ot" /> (p.456-457) :

* '''Data analysis''': This technique is used to ensure that the reserves of the project are enough to not threaten its budget and the deadlines. <ref name="ot" /> More specifically, this analysis is checking if the reserves that a project has as a backup is enough to ensure that it will have the resources to manage an unexpected event that will make its budget and time exceed the agreed limits. <ref name="Pmi" />

* '''Audits''': This method applied in order to evaluate the performance of the processes included in the risk management and hence they are recorded in the risk register. It is worth noting that this way of monitoring risks can be conducted during project meetings when the project team examines the risks. <ref name="ot" />

* '''Meetings''': During meetings, the project management team can evaluate the various risks. This is a vital process that examines the overall process of risk management planning. More specifically, the meeting can ensure that all the stakeholders have a clear overview of the risks that need to be tackled. Furthermore, it is possible that some of the identified risks happened in the past, and through the meeting, the project management team can communicate the learning outcomes and mistakes that they should avoid in the future. <ref name="ot" />

After these processes, the risk register framework is updated with the new data in order to assist the project management team with the risk management process.

==Reflections==
While many positive outcomes can arise from the use of the risk register framework, there are also some limitations that are worth mentioning. In this section, the advantages and limitations of the risk register framework are discussed.
=== Advantages ===
The risk register is used to document information about the various risks that have been identified not only at the very early stages but also throughout the whole lifecycle of the project. This is an extremely beneficial characteristic of the tool that can be used for the assessment of a project's performance as well as for the strategic and decision-making processes that are related to risk management. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> More specifically, as the project is developing, the amount of gathered information is growing which means that new risks will be identified to threaten the project's success. The risk register table is storing the information from the risks that already have been identified and evaluated, and once new treats have been found, the table is expanded with the new data. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>, <ref name="Pmi" /> This could be vital for the overall success of the project since the new risk could be well communicated among the stakeholders and thus they will be informed for the new actions they have to take in order to eliminate the negative impact of the threats. Additionally, the table includes information that is the output of the qualitative risk analysis. In other words, in the qualitative analysis, it is examined how possible is for a risk to take place and the impact that it will have on the project. This analysis is used to prioritize the risks based on their importance. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>, <ref name="Pmi" /> Once the risks are ranked, the stakeholders are informed of the threats that they have to pay more attention to. This means that they might have to spend more time planning a strategy around these risks as they will have a higher impact. Finally, the risk register is an advantageous tool for complex projects. When a project is very complex, it's important to use tools that could break down the planning processes. Risk register, due to its structure, provides the needed information for every risk from the moment it is identified. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref>

=== Limitations ===
The identified risks are listed based on the critical way of thinking of the people who are associated with the risk evaluation. This could be a limitation since the results on the risk register table might reflect the personal opinion of the people who implemented it and not the reality.<ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>, <ref name="fd"> Why risk registers don't do enough to help you manage risks, https://www.civilsociety.co.uk/finance/why-risk-registers-don-t-do-enough-to-help-you-manage-risks.html, Accessed on 22/02/2020 </ref> Moreover, the development of the risk register table requires a lot of time in order to insert the data from the four processes. Apart from that since the table is updated when changes are made either to the list of the identified risks or to the actions that have to be taken, it is possible that mistakes might occur when the new data are imported. Hence, the implementation of the documented results of the risk register seeks attention in order to avoid mistakes. However, the risk register is more than important when it comes to analysing the risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> This means that even though it is a time-consuming process, the outcomes of the tool can prevent threats that otherwise could have a negative impact on the project.

It is worth noting, that ignoring the limitations of the risk management tool could have a negative impact on the project. Nevertheless, it is a very important tool that should be applied in the risk management processes most or all of the time.

==Annotated bibliography==
* ''PMI Standard for Risk Management (2019)''
This book is based on the PMBOK Guide– Fourth Edition. It is a book about the risk management processes that a project has to follow. It analyses the techniques for the identification, assessment, response, and controlling of the risks. In this book, the reader can find information for the risk register model and how it is involved in all the previously mentioned processes.

* ''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017)''
This book is focused on how to manage projects based on PRINCE2 principles. It describes how the different activities of a product based on its implementation stage. Risks analysis is also explained in one of the chapters of the book. In this book, the various stages of the risk management process are explained by providing the needing theory and well-explained figures.

* ''Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017)''
The book A guide to the Project Management Body of Knowledge provides detailed information on how to manage projects. The risk register framework is analyzed in the chapters of the book by providing information on the usage of the tool in the various processes of risk management. Moreover, it is explained the characteristics that should be involved in the risk register table. The study of the various techniques that are used in the risk management planning of the article is based on the analysis of this book.

==References==
<references/>

Risk Register analysis

2021-02-28T17:36:18Z

Dorothea Georgiadou: /* The role of Risk Register */

Developed by Dorothea Georgiadou

In an age where the economic, social, and political environment is constantly shifting, there is an urgent need to study the risks that may threaten the success of a project. It is particularly important to study the risks that may adversely affect the project and lead to events that might have as a consequence the exceeding of the agreed budget and time. For this reason, the risk management planning should identify and describe in detail the potential risks by providing the needed information for the actions that should be done for eliminating their negative impact. The high uncertainty that exists in projects necessitates the use of a management tool that will control the risks. <ref name="Pmi"> Project Mangement Institute. "Practice standard for project risk management." Project Management Institute, 2009. </ref> In this article the risk management framework ‘’Risk register’’ is explained. The risk register is a tool that covers and studies many aspects of risk management processes. More specifically, the aim of this article is to explain how this tool can be used to document the outcomes of the risk management processes. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013, Retrieved from:https://www.researchgate.net/publication/263528336_Risk_register_developement_and_implementation_for_construction_projects </ref> The article provides a description of the tool along with the reasons that it should be used. It is a framework that aims to record the information from the processes related to the identification, assessment, responding, and monitoring of potential risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. Finally, the article analyzes along with the benefits also the limitations of this risk management tool.

== Why use risk register? ==
In an ever-changing environment, a projects’ success is associated with a high level of uncertainty. In the ‘Practice Standard for Project Risk Management’, risk management is an approach that plays a vital role in the strategic and decision-making processes since adjustments in the project management planning can be done after the identification of the projects’ challenges. The risk register framework is used to support the risk management process in order to eliminate the negative impact that the various threats might have on a project. Threats could come from the external and internal environment of the company. The external risks are associated with the economic, social, political, and technological environment, while the internal threats include risks that are related to human actions and estimations. For example, it is possible for people to make wrong estimations because of inexperience and underestimation of some threats. This high level of uncertainty makes it increasingly necessary to use a model that assists the risk management process in a more effective way. <ref name="Pmi" /> <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>.
=== The role of Risk Register ===
In ''‘Practice Standard for Project Risk Management’'', the risk register is defined as the framework that is used in project risk management for the documentation of the identified risks. <ref name="Pmi" /> It records all the needed information that will be the steppingstone to overcome the risks that might menace projects' success. <ref name="Pmi" /> It is worth noting that based on ''‘PRINCE2’'', the risks are divided into threats and opportunities. Threats are the risks that could have negative consequences for the project, while opportunities could bring positive outcomes to the company. <ref name="PRINCE"> Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017) Retrieved from: https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=4863041</ref> The article is mainly focused on the documentation of the various threats in the risk register. The importance of the tool is highlighted in the fact that it can assist project managers with tackling potential threats and to have a better and clearer overview of the internal and external risks that might negatively affect the success of the project. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref> The aim of the risk register is to record information related to the identification, assessment, evaluation of importance, and managing of the potential risks. <ref name="Pmi" /> <ref name="PRINCE" /> More specifically, the uncertainty that exists in projects makes it necessary to use a model that provides various information for the events that could threaten the projects. <ref name="Pmi" />

In the ''‘PMBOK guide ’ ''it is outlined that the tool risk register can be used in different phases of a project. Firstly, it can be used at a very early stage of a project in order to provide information for the risks that might be a threat. Secondly, as the project continues, new threats are recorded and documented in the risk register. In other words, it is used to update the new risks and inform the risk owners how they should monitor the new threats. Finally, it documents all the risks that have been recorded after the completion of a project. <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>

=== Elements of Risk Register===

As can be seen in figure 1, the implementation of the risk register model follows four processes. Firstly, the risks have to be identified. Secondly, they have to be assessed based on their impact and probability. After risk assessment, it is important to define the actions that must be taken, in order to manage the risks. The final process of the risk register model follows, deals with the ways the risks can be monitored. <ref name="Pmi" />, <ref name="ot" />, <ref name="PRINCE"/> The outcome of the previously mentioned processes is the input for the risk register framework.

[[File:Screenshot 2021-02-25 221935.png‎|center|thumb|310px|Figure 1: Implementation steps of Risk Register (own figure, based on <ref name="Pmi" /> and <ref name="PRINCE"/>) ]]

Risk register has the form of a table where each column represents different characteristics of the potential risks.<ref name="latvia"> Project Risk Register Analysis Based on the Theoretical Analysis of Project Management Notion of Risk, Juris Uzulāns, University of Latvia, 2016 Retrieved from: https://content.sciendo.com/configurable/contentpage/journals$002feb$002f29$002f1$002farticle-p43.xml </ref> In order to start building the risk register the first step is the identification of the risks. Once the potential threats are known it is vital to provide a brief description for each one. <ref name="Pmi" /> This helps the project managers not only to clarify the risks but also to understand why they are threatening the project’s success. Secondly, for the assessment of the risks, their probability and impact on the project are examined. Furthermore, in'' ‘Practice Standard for Project Risk Management’'' it is stated that the evaluation of the risk is depending on their impact and their frequency to happen.<ref name="Pmi" /> For instance, the risks that have high impact and probability to occur, are risks with higher importance than the risks with low frequency and impact. The identification of the risks’ importance is an essential element for project managers to know which risks are needed more attention and time for setting up a plan in order to overcome them. <ref name="Pmi" /> Furthermore, based on the ''‘PMBOK guide’'' the risk register also includes information about the person who must tackle every risk and the actions that he has to take to eliminate its negative consequences. <ref name="ot" /> Finally, the risks should be monitored in order to prevent unexpected events. <ref name="Pmi" /> The above elements are demanding high attention as they are mainly focused on dominant areas of the risk management process which are the identification of the threats, the evaluation of their importance, and the course of action that should be taken.
[[File:table1111.png‎|center|thumb|600px|Figure 2: Risk Register table (own figure, based on <ref name="Pmi" /> and <ref name="PRINCE"/>) ]]

==How Risk register is used ? ==
In order to have an in-depth understanding of the risk register, it is of utmost importance to analyse the way that it can be used. The tool aims to eliminate the negative impacts of the various threats by identifying, assessing, evaluating, and monitoring them. The following sections provide a guidance on how the four processes of risk register can be implemented.
=== 1. How to identify the risks ===
As a first step, the risks have to be identified by using the right techniques. Once this is complete, a short description of the risks that have been identified through the risk management process is provided.

''' 1.1 Risk identification '''

As it is quoted in ''‘Practice Standard for Project Risk Management’'', ''‘’ A risk cannot be managed unless it is first identified.’’'' <ref name="Pmi" /> (p.25) The identified risks are the first information that will be used in the risk register. <ref name="Pmi" />, <ref name="ot" /> It is worth noting that the risk identification process is continuous because as time passes, the number of information increases. In other words, new risks will become knowable by repeating the risk identification process in different phases of a project. <ref name="Pmi" />

In this article, three methods are used for the risk identification process and all of them are following the ''‘Practice Standard for Project Risk Management’'' <ref name="Pmi" /> (p.28):

*'''''Historical review''''': This technique is used as an analysis of events that happened in the past. When this method, is used it is vital to make sure that the events that are under observation are correlated with risks that happened before in this project or in different projects from the same or different company. This method demands attention as there is the risk to compare data and risks from projects that are not closely connected to the project.
* '''''Current Assessment''''': In this method, the risk identification process is focused on analysing the project’s uncertainty based on the information that is known in this specific period of time.
*''''' Creativity Techniques''''': This approach is based on the creativity of the people who participate in the project. To be more specific, stakeholders have the chance to work individually or with other people in order to identify risks by using creative methods and thinking outside of the box.

All of the techniques mentioned above have both strong points and limitations. This means that if they are used separately, they might lead to inadequate results. Thus, the combination of the three techniques can guarantee more accurate results. <ref name="Pmi" /> (p.28)

''' 1.2 Risk description'''

The description of the identified risks is a very important component of the risk identification process. It is a way to make sure that the risks are well communicated and understood among all the stakeholders. <ref name="ppp"> Guide to Using a Risk Register, Stephanie Ray, https://www.projectmanager.com/blog/guide-using-risk-register Accessed on 19/02/2020 </ref> For instance, in a construction problem, it is identified that a potential risk could be a shock in the economy. A potential explanation is that a shock in the economy could increase the price of raw materials and as a result the project might exceed the agreed budget. As it could be observed, the description of this risk could give a better insight into what this change might impact.

=== 2. How to assess the risks ===
The assessment of the various risks could be applied by using two methods, namely, the qualitative and quantitative risk analysis. Both methods are used to evaluate risks’ importance to the project. This includes an analysis of the probability that each risk has to occur and the impact that they might have on the project. <ref name="Pmi" /> In this article, the assessment of the identified risks is following the ''‘’ Practice Standard for Project Risk Management‘’ '' and the''‘’ PMBOK guide ‘’ ''.

* '''Qualitative risk analysis''' <ref name="Pmi" />,<ref name="ot" />

In qualitative risk analysis, the risks are evaluated and ranked based on their probability, impact, and some other characteristics that have been defined before the implementation of the analysis. This analysis is implemented regularly as new threats might need to be identified. The basic components of qualitative risk analysis are the high or low probability of a risk to happen and the consequences that it might have in ''‘’ one or more project objectives such as schedule, cost, quality, or performance.’’'' <ref name="ot" /> (p.423) Additionally, in qualitative risk analysis the risks can be grouped based on various criteria. For example, they can be grouped by risks that might exceed projects’ deadlines. This way, the project management team could monitor the risks in a more effective way since not only they will know the project areas they need to pay more attention to, but they will also have a quicker response managing the threats of the several categories.

* '''Quantitative risk analysis''' <ref name="Pmi" />,<ref name="ot" />

The quantitative risk analysis is used to calculate risks’ effects on the project. While this numerical analysis is not considered vital for all the projects, it provides more pragmatistic results. The implementation of the quantitative risk analysis follows on from the qualitative risk analysis. This could be explained by the fact that in the qualitative risk analysis the risks are already prioritized and thus the most vital threats are recognized and could be calculated. The impact and the probability are calculated, and the risk register table can be updated with numerical results.

=== 3. How to respond to the risks ===

It is of utmost importance to tackle the identified risks once they have been assessed. In order to do so, it is necessary to perform a risk management plan which will include the actions for dealing with the risks and the person who is responsible to tackle them. As a first step the risks should be known by all the stakeholders. Every potential risk is assigned to the right people. These people are called risk owners and they are responsible with controlling and finding solutions for the risks they are assigned with. The risks could harm the project in various ways and for this reason, there should be a plan with responses for all of them.<ref name="Pmi" /> In the ''‘Practice Standard for Project Risk Management’'' it is written that ''’’ the planning entails agreeing upon the actions to be taken and the potential changes to the budget, schedule, resources, and scope which these actions might cause.’’'' <ref name="Pmi" /> (p.43) Furthermore, the actions that have to be taken for every risk should be developed at the very early stage of its identification. In other words, it is integral to have the strategies and responses in advance so that project’s time schedule will change as little as possible. <ref name="Pmi" /> The risk register includes all the responses and actions on its table. Once new risks are identified risk register is updated with new strategies that the risk owner has to follow. Moreover, throughout the lifecycle of a project, it is possible to make adjustments and corrections to the plans of the previously identified risks. <ref name="ppp" />

=== 4. How to monitor the risks ===

Risk monitoring is the last process that needs to be implemented in order to fill in the risk register table. This final step is as important as the three steps mentioned above. Risk should be monitored throughout the life cycle of a project. It is a continuous process that includes the actions that have to be taken in order to control not only the risks that already have been identified but also the new threats that have to be tamed. <ref name="Pmi" />. <ref name="ot" /> Additionally, risk monitoring is used to certify that all the risk responses are taken place when there is a need for action. This is a way to appraise the effectiveness of the responses and the risk owner in the risk management process. <ref name="Pmi" /> The process starts by checking the risk register table. The table should include the appropriate responses for every risk, otherwise, it has to be updated with the new actions that have to be taken.<ref name="Pmi" /> Moreover, it is important for the new actions and changes to be well communicated to the stakeholders and to the people responsible for that specific risks. The number of information varies at the different stages of a project. More information is available to the project managers as the project continues its processes, which means that changes can be made in the risk register. These changes will be defined during the monitoring process and will be updated and documented in the risk register by providing new information for the actions that have to be changed. <ref name="Pmi" />

In this article, three techniques are analyzed for controlling the risks. These techniques are analyzed in the ''‘PMBOK guide ’'' <ref name="ot" /> (p.456-457) :

* '''Data analysis''': This technique is used to ensure that the reserves of the project are enough to not threaten its budget and the deadlines. <ref name="ot" /> More specifically, this analysis is checking if the reserves that a project has as a backup is enough to ensure that it will have the resources to manage an unexpected event that will make its budget and time exceed the agreed limits. <ref name="Pmi" />

* '''Audits''': This method applied in order to evaluate the performance of the processes included in the risk management and hence they are recorded in the risk register. It is worth noting that this way of monitoring risks can be conducted during project meetings when the project team examines the risks. <ref name="ot" />

* '''Meetings''': During meetings, the project management team can evaluate the various risks. This is a vital process that examines the overall process of risk management planning. More specifically, the meeting can ensure that all the stakeholders have a clear overview of the risks that need to be tackled. Furthermore, it is possible that some of the identified risks happened in the past, and through the meeting, the project management team can communicate the learning outcomes and mistakes that they should avoid in the future. <ref name="ot" />

After these processes, the risk register framework is updated with the new data in order to assist the project management team with the risk management process.

==Reflections==
While many positive outcomes can arise from the use of the risk register framework, there are also some limitations that are worth mentioning. In this section, the advantages and limitations of the risk register framework are discussed.
=== Advantages ===
The risk register is used to document information about the various risks that have been identified not only at the very early stages but also throughout the whole lifecycle of the project. This is an extremely beneficial characteristic of the tool that can be used for the assessment of a project's performance as well as for the strategic and decision-making processes that are related to risk management. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> More specifically, as the project is developing, the amount of gathered information is growing which means that new risks will be identified to threaten the project's success. The risk register table is storing the information from the risks that already have been identified and evaluated, and once new treats have been found, the table is expanded with the new data. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>, <ref name="Pmi" /> This could be vital for the overall success of the project since the new risk could be well communicated among the stakeholders and thus they will be informed for the new actions they have to take in order to eliminate the negative impact of the threats. Additionally, the table includes information that is the output of the qualitative risk analysis. In other words, in the qualitative analysis, it is examined how possible is for a risk to take place and the impact that it will have on the project. This analysis is used to prioritize the risks based on their importance. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>, <ref name="Pmi" /> Once the risks are ranked, the stakeholders are informed of the threats that they have to pay more attention to. This means that they might have to spend more time planning a strategy around these risks as they will have a higher impact. Finally, the risk register is an advantageous tool for complex projects. When a project is very complex, it's important to use tools that could break down the planning processes. Risk register, due to its structure, provides the needed information for every risk from the moment it is identified. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref>

=== Limitations ===
The identified risks are listed based on the critical way of thinking of the people who are associated with the risk evaluation. This could be a limitation since the results on the risk register table might reflect the personal opinion of the people who implemented it and not the reality.<ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>, <ref name="fd"> Why risk registers don't do enough to help you manage risks, https://www.civilsociety.co.uk/finance/why-risk-registers-don-t-do-enough-to-help-you-manage-risks.html, Accessed on 22/02/2020 </ref> Moreover, the development of the risk register table requires a lot of time in order to insert the data from the four processes. Apart from that since the table is updated when changes are made either to the list of the identified risks or to the actions that have to be taken, it is possible that mistakes might occur when the new data are imported. Hence, the implementation of the documented results of the risk register seeks attention in order to avoid mistakes. However, the risk register is more than important when it comes to analysing the risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> This means that even though it is a time-consuming process, the outcomes of the tool can prevent threats that otherwise could have a negative impact on the project.

It is worth noting, that ignoring the limitations of the risk management tool could have a negative impact on the project. Nevertheless, it is a very important tool that should be applied in the risk management processes most or all of the time.

==Annotated bibliography==
* ''PMI Standard for Risk Management (2019)''
This book is based on the PMBOK Guide– Fourth Edition. It is a book about the risk management processes that a project has to follow. It analyses the techniques for the identification, assessment, response, and controlling of the risks. In this book, the reader can find information for the risk register model and how it is involved in all the previously mentioned processes.

* ''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017)''
This book is focused on how to manage projects based on PRINCE2 principles. It describes how the different activities of a product based on its implementation stage. Risks analysis is also explained in one of the chapters of the book. In this book, the various stages of the risk management process are explained by providing the needing theory and well-explained figures.

* ''Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017)''
The book A guide to the Project Management Body of Knowledge provides detailed information on how to manage projects. The risk register framework is analyzed in the chapters of the book by providing information on the usage of the tool in the various processes of risk management. Moreover, it is explained the characteristics that should be involved in the risk register table. The study of the various techniques that are used in the risk management planning of the article is based on the analysis of this book.

==References==
<references/>

Risk Register analysis

2021-02-28T17:36:05Z

Dorothea Georgiadou: /* Why use risk register? */

Developed by Dorothea Georgiadou

In an age where the economic, social, and political environment is constantly shifting, there is an urgent need to study the risks that may threaten the success of a project. It is particularly important to study the risks that may adversely affect the project and lead to events that might have as a consequence the exceeding of the agreed budget and time. For this reason, the risk management planning should identify and describe in detail the potential risks by providing the needed information for the actions that should be done for eliminating their negative impact. The high uncertainty that exists in projects necessitates the use of a management tool that will control the risks. <ref name="Pmi"> Project Mangement Institute. "Practice standard for project risk management." Project Management Institute, 2009. </ref> In this article the risk management framework ‘’Risk register’’ is explained. The risk register is a tool that covers and studies many aspects of risk management processes. More specifically, the aim of this article is to explain how this tool can be used to document the outcomes of the risk management processes. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013, Retrieved from:https://www.researchgate.net/publication/263528336_Risk_register_developement_and_implementation_for_construction_projects </ref> The article provides a description of the tool along with the reasons that it should be used. It is a framework that aims to record the information from the processes related to the identification, assessment, responding, and monitoring of potential risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. Finally, the article analyzes along with the benefits also the limitations of this risk management tool.

== Why use risk register? ==
In an ever-changing environment, a projects’ success is associated with a high level of uncertainty. In the ‘Practice Standard for Project Risk Management’, risk management is an approach that plays a vital role in the strategic and decision-making processes since adjustments in the project management planning can be done after the identification of the projects’ challenges. The risk register framework is used to support the risk management process in order to eliminate the negative impact that the various threats might have on a project. Threats could come from the external and internal environment of the company. The external risks are associated with the economic, social, political, and technological environment, while the internal threats include risks that are related to human actions and estimations. For example, it is possible for people to make wrong estimations because of inexperience and underestimation of some threats. This high level of uncertainty makes it increasingly necessary to use a model that assists the risk management process in a more effective way. <ref name="Pmi" /> <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>.
=== The role of Risk Register ===
In ''‘Practice Standard for Project Risk Management’'', the risk register is defined as the framework that is used in project risk management for the documentation of the identified risks. <ref name="Pmi" /> It records all the needed information that will be the steppingstone to overcome the risks that might menace projects' success. <ref name="Pmi" /> It is worth noting that based on ''‘PRINCE2’'', the risks are divided into threats and opportunities. Threats are the risks that could have negative consequences for the project, while opportunities could bring positive outcomes to the company. <ref name="PRINCE"> Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017) Retrieved from: https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=4863041</ref> The article is mainly focused on the documentation of the various threats in the risk register. The importance of the tool is highlighted in the fact that it can assist project managers with tackling potential threats and to have a better and clearer overview of the internal and external risks that might negatively affect the success of the project. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref> The aim of the risk register is to record information related to the identification, assessment, evaluation of importance, and managing of the potential risks. <ref name="Pmi" />, <ref name="PRINCE" /> More specifically, the uncertainty that exists in projects makes it necessary to use a model that provides various information for the events that could threaten the projects. <ref name="Pmi" />

In the ''‘PMBOK guide ’ ''it is outlined that the tool risk register can be used in different phases of a project. Firstly, it can be used at a very early stage of a project in order to provide information for the risks that might be a threat. Secondly, as the project continues, new threats are recorded and documented in the risk register. In other words, it is used to update the new risks and inform the risk owners how they should monitor the new threats. Finally, it documents all the risks that have been recorded after the completion of a project. <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>

=== Elements of Risk Register===

As can be seen in figure 1, the implementation of the risk register model follows four processes. Firstly, the risks have to be identified. Secondly, they have to be assessed based on their impact and probability. After risk assessment, it is important to define the actions that must be taken, in order to manage the risks. The final process of the risk register model follows, deals with the ways the risks can be monitored. <ref name="Pmi" />, <ref name="ot" />, <ref name="PRINCE"/> The outcome of the previously mentioned processes is the input for the risk register framework.

[[File:Screenshot 2021-02-25 221935.png‎|center|thumb|310px|Figure 1: Implementation steps of Risk Register (own figure, based on <ref name="Pmi" /> and <ref name="PRINCE"/>) ]]

Risk register has the form of a table where each column represents different characteristics of the potential risks.<ref name="latvia"> Project Risk Register Analysis Based on the Theoretical Analysis of Project Management Notion of Risk, Juris Uzulāns, University of Latvia, 2016 Retrieved from: https://content.sciendo.com/configurable/contentpage/journals$002feb$002f29$002f1$002farticle-p43.xml </ref> In order to start building the risk register the first step is the identification of the risks. Once the potential threats are known it is vital to provide a brief description for each one. <ref name="Pmi" /> This helps the project managers not only to clarify the risks but also to understand why they are threatening the project’s success. Secondly, for the assessment of the risks, their probability and impact on the project are examined. Furthermore, in'' ‘Practice Standard for Project Risk Management’'' it is stated that the evaluation of the risk is depending on their impact and their frequency to happen.<ref name="Pmi" /> For instance, the risks that have high impact and probability to occur, are risks with higher importance than the risks with low frequency and impact. The identification of the risks’ importance is an essential element for project managers to know which risks are needed more attention and time for setting up a plan in order to overcome them. <ref name="Pmi" /> Furthermore, based on the ''‘PMBOK guide’'' the risk register also includes information about the person who must tackle every risk and the actions that he has to take to eliminate its negative consequences. <ref name="ot" /> Finally, the risks should be monitored in order to prevent unexpected events. <ref name="Pmi" /> The above elements are demanding high attention as they are mainly focused on dominant areas of the risk management process which are the identification of the threats, the evaluation of their importance, and the course of action that should be taken.
[[File:table1111.png‎|center|thumb|600px|Figure 2: Risk Register table (own figure, based on <ref name="Pmi" /> and <ref name="PRINCE"/>) ]]

==How Risk register is used ? ==
In order to have an in-depth understanding of the risk register, it is of utmost importance to analyse the way that it can be used. The tool aims to eliminate the negative impacts of the various threats by identifying, assessing, evaluating, and monitoring them. The following sections provide a guidance on how the four processes of risk register can be implemented.
=== 1. How to identify the risks ===
As a first step, the risks have to be identified by using the right techniques. Once this is complete, a short description of the risks that have been identified through the risk management process is provided.

''' 1.1 Risk identification '''

As it is quoted in ''‘Practice Standard for Project Risk Management’'', ''‘’ A risk cannot be managed unless it is first identified.’’'' <ref name="Pmi" /> (p.25) The identified risks are the first information that will be used in the risk register. <ref name="Pmi" />, <ref name="ot" /> It is worth noting that the risk identification process is continuous because as time passes, the number of information increases. In other words, new risks will become knowable by repeating the risk identification process in different phases of a project. <ref name="Pmi" />

In this article, three methods are used for the risk identification process and all of them are following the ''‘Practice Standard for Project Risk Management’'' <ref name="Pmi" /> (p.28):

*'''''Historical review''''': This technique is used as an analysis of events that happened in the past. When this method, is used it is vital to make sure that the events that are under observation are correlated with risks that happened before in this project or in different projects from the same or different company. This method demands attention as there is the risk to compare data and risks from projects that are not closely connected to the project.
* '''''Current Assessment''''': In this method, the risk identification process is focused on analysing the project’s uncertainty based on the information that is known in this specific period of time.
*''''' Creativity Techniques''''': This approach is based on the creativity of the people who participate in the project. To be more specific, stakeholders have the chance to work individually or with other people in order to identify risks by using creative methods and thinking outside of the box.

All of the techniques mentioned above have both strong points and limitations. This means that if they are used separately, they might lead to inadequate results. Thus, the combination of the three techniques can guarantee more accurate results. <ref name="Pmi" /> (p.28)

''' 1.2 Risk description'''

The description of the identified risks is a very important component of the risk identification process. It is a way to make sure that the risks are well communicated and understood among all the stakeholders. <ref name="ppp"> Guide to Using a Risk Register, Stephanie Ray, https://www.projectmanager.com/blog/guide-using-risk-register Accessed on 19/02/2020 </ref> For instance, in a construction problem, it is identified that a potential risk could be a shock in the economy. A potential explanation is that a shock in the economy could increase the price of raw materials and as a result the project might exceed the agreed budget. As it could be observed, the description of this risk could give a better insight into what this change might impact.

=== 2. How to assess the risks ===
The assessment of the various risks could be applied by using two methods, namely, the qualitative and quantitative risk analysis. Both methods are used to evaluate risks’ importance to the project. This includes an analysis of the probability that each risk has to occur and the impact that they might have on the project. <ref name="Pmi" /> In this article, the assessment of the identified risks is following the ''‘’ Practice Standard for Project Risk Management‘’ '' and the''‘’ PMBOK guide ‘’ ''.

* '''Qualitative risk analysis''' <ref name="Pmi" />,<ref name="ot" />

In qualitative risk analysis, the risks are evaluated and ranked based on their probability, impact, and some other characteristics that have been defined before the implementation of the analysis. This analysis is implemented regularly as new threats might need to be identified. The basic components of qualitative risk analysis are the high or low probability of a risk to happen and the consequences that it might have in ''‘’ one or more project objectives such as schedule, cost, quality, or performance.’’'' <ref name="ot" /> (p.423) Additionally, in qualitative risk analysis the risks can be grouped based on various criteria. For example, they can be grouped by risks that might exceed projects’ deadlines. This way, the project management team could monitor the risks in a more effective way since not only they will know the project areas they need to pay more attention to, but they will also have a quicker response managing the threats of the several categories.

* '''Quantitative risk analysis''' <ref name="Pmi" />,<ref name="ot" />

The quantitative risk analysis is used to calculate risks’ effects on the project. While this numerical analysis is not considered vital for all the projects, it provides more pragmatistic results. The implementation of the quantitative risk analysis follows on from the qualitative risk analysis. This could be explained by the fact that in the qualitative risk analysis the risks are already prioritized and thus the most vital threats are recognized and could be calculated. The impact and the probability are calculated, and the risk register table can be updated with numerical results.

=== 3. How to respond to the risks ===

It is of utmost importance to tackle the identified risks once they have been assessed. In order to do so, it is necessary to perform a risk management plan which will include the actions for dealing with the risks and the person who is responsible to tackle them. As a first step the risks should be known by all the stakeholders. Every potential risk is assigned to the right people. These people are called risk owners and they are responsible with controlling and finding solutions for the risks they are assigned with. The risks could harm the project in various ways and for this reason, there should be a plan with responses for all of them.<ref name="Pmi" /> In the ''‘Practice Standard for Project Risk Management’'' it is written that ''’’ the planning entails agreeing upon the actions to be taken and the potential changes to the budget, schedule, resources, and scope which these actions might cause.’’'' <ref name="Pmi" /> (p.43) Furthermore, the actions that have to be taken for every risk should be developed at the very early stage of its identification. In other words, it is integral to have the strategies and responses in advance so that project’s time schedule will change as little as possible. <ref name="Pmi" /> The risk register includes all the responses and actions on its table. Once new risks are identified risk register is updated with new strategies that the risk owner has to follow. Moreover, throughout the lifecycle of a project, it is possible to make adjustments and corrections to the plans of the previously identified risks. <ref name="ppp" />

=== 4. How to monitor the risks ===

Risk monitoring is the last process that needs to be implemented in order to fill in the risk register table. This final step is as important as the three steps mentioned above. Risk should be monitored throughout the life cycle of a project. It is a continuous process that includes the actions that have to be taken in order to control not only the risks that already have been identified but also the new threats that have to be tamed. <ref name="Pmi" />. <ref name="ot" /> Additionally, risk monitoring is used to certify that all the risk responses are taken place when there is a need for action. This is a way to appraise the effectiveness of the responses and the risk owner in the risk management process. <ref name="Pmi" /> The process starts by checking the risk register table. The table should include the appropriate responses for every risk, otherwise, it has to be updated with the new actions that have to be taken.<ref name="Pmi" /> Moreover, it is important for the new actions and changes to be well communicated to the stakeholders and to the people responsible for that specific risks. The number of information varies at the different stages of a project. More information is available to the project managers as the project continues its processes, which means that changes can be made in the risk register. These changes will be defined during the monitoring process and will be updated and documented in the risk register by providing new information for the actions that have to be changed. <ref name="Pmi" />

In this article, three techniques are analyzed for controlling the risks. These techniques are analyzed in the ''‘PMBOK guide ’'' <ref name="ot" /> (p.456-457) :

* '''Data analysis''': This technique is used to ensure that the reserves of the project are enough to not threaten its budget and the deadlines. <ref name="ot" /> More specifically, this analysis is checking if the reserves that a project has as a backup is enough to ensure that it will have the resources to manage an unexpected event that will make its budget and time exceed the agreed limits. <ref name="Pmi" />

* '''Audits''': This method applied in order to evaluate the performance of the processes included in the risk management and hence they are recorded in the risk register. It is worth noting that this way of monitoring risks can be conducted during project meetings when the project team examines the risks. <ref name="ot" />

* '''Meetings''': During meetings, the project management team can evaluate the various risks. This is a vital process that examines the overall process of risk management planning. More specifically, the meeting can ensure that all the stakeholders have a clear overview of the risks that need to be tackled. Furthermore, it is possible that some of the identified risks happened in the past, and through the meeting, the project management team can communicate the learning outcomes and mistakes that they should avoid in the future. <ref name="ot" />

After these processes, the risk register framework is updated with the new data in order to assist the project management team with the risk management process.

==Reflections==
While many positive outcomes can arise from the use of the risk register framework, there are also some limitations that are worth mentioning. In this section, the advantages and limitations of the risk register framework are discussed.
=== Advantages ===
The risk register is used to document information about the various risks that have been identified not only at the very early stages but also throughout the whole lifecycle of the project. This is an extremely beneficial characteristic of the tool that can be used for the assessment of a project's performance as well as for the strategic and decision-making processes that are related to risk management. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> More specifically, as the project is developing, the amount of gathered information is growing which means that new risks will be identified to threaten the project's success. The risk register table is storing the information from the risks that already have been identified and evaluated, and once new treats have been found, the table is expanded with the new data. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>, <ref name="Pmi" /> This could be vital for the overall success of the project since the new risk could be well communicated among the stakeholders and thus they will be informed for the new actions they have to take in order to eliminate the negative impact of the threats. Additionally, the table includes information that is the output of the qualitative risk analysis. In other words, in the qualitative analysis, it is examined how possible is for a risk to take place and the impact that it will have on the project. This analysis is used to prioritize the risks based on their importance. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>, <ref name="Pmi" /> Once the risks are ranked, the stakeholders are informed of the threats that they have to pay more attention to. This means that they might have to spend more time planning a strategy around these risks as they will have a higher impact. Finally, the risk register is an advantageous tool for complex projects. When a project is very complex, it's important to use tools that could break down the planning processes. Risk register, due to its structure, provides the needed information for every risk from the moment it is identified. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref>

=== Limitations ===
The identified risks are listed based on the critical way of thinking of the people who are associated with the risk evaluation. This could be a limitation since the results on the risk register table might reflect the personal opinion of the people who implemented it and not the reality.<ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>, <ref name="fd"> Why risk registers don't do enough to help you manage risks, https://www.civilsociety.co.uk/finance/why-risk-registers-don-t-do-enough-to-help-you-manage-risks.html, Accessed on 22/02/2020 </ref> Moreover, the development of the risk register table requires a lot of time in order to insert the data from the four processes. Apart from that since the table is updated when changes are made either to the list of the identified risks or to the actions that have to be taken, it is possible that mistakes might occur when the new data are imported. Hence, the implementation of the documented results of the risk register seeks attention in order to avoid mistakes. However, the risk register is more than important when it comes to analysing the risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> This means that even though it is a time-consuming process, the outcomes of the tool can prevent threats that otherwise could have a negative impact on the project.

It is worth noting, that ignoring the limitations of the risk management tool could have a negative impact on the project. Nevertheless, it is a very important tool that should be applied in the risk management processes most or all of the time.

==Annotated bibliography==
* ''PMI Standard for Risk Management (2019)''
This book is based on the PMBOK Guide– Fourth Edition. It is a book about the risk management processes that a project has to follow. It analyses the techniques for the identification, assessment, response, and controlling of the risks. In this book, the reader can find information for the risk register model and how it is involved in all the previously mentioned processes.

* ''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017)''
This book is focused on how to manage projects based on PRINCE2 principles. It describes how the different activities of a product based on its implementation stage. Risks analysis is also explained in one of the chapters of the book. In this book, the various stages of the risk management process are explained by providing the needing theory and well-explained figures.

* ''Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017)''
The book A guide to the Project Management Body of Knowledge provides detailed information on how to manage projects. The risk register framework is analyzed in the chapters of the book by providing information on the usage of the tool in the various processes of risk management. Moreover, it is explained the characteristics that should be involved in the risk register table. The study of the various techniques that are used in the risk management planning of the article is based on the analysis of this book.

==References==
<references/>

Risk Register analysis

2021-02-28T17:33:30Z

Dorothea Georgiadou: /* Elements of Risk Register */

Developed by Dorothea Georgiadou

In an age where the economic, social, and political environment is constantly shifting, there is an urgent need to study the risks that may threaten the success of a project. It is particularly important to study the risks that may adversely affect the project and lead to events that might have as a consequence the exceeding of the agreed budget and time. For this reason, the risk management planning should identify and describe in detail the potential risks by providing the needed information for the actions that should be done for eliminating their negative impact. The high uncertainty that exists in projects necessitates the use of a management tool that will control the risks. <ref name="Pmi"> Project Mangement Institute. "Practice standard for project risk management." Project Management Institute, 2009. </ref> In this article the risk management framework ‘’Risk register’’ is explained. The risk register is a tool that covers and studies many aspects of risk management processes. More specifically, the aim of this article is to explain how this tool can be used to document the outcomes of the risk management processes. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013, Retrieved from:https://www.researchgate.net/publication/263528336_Risk_register_developement_and_implementation_for_construction_projects </ref> The article provides a description of the tool along with the reasons that it should be used. It is a framework that aims to record the information from the processes related to the identification, assessment, responding, and monitoring of potential risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. Finally, the article analyzes along with the benefits also the limitations of this risk management tool.

== Why use risk register? ==
In an ever-changing environment, a projects’ success is associated with a high level of uncertainty. In the ‘Practice Standard for Project Risk Management’, risk management is an approach that plays a vital role in the strategic and decision-making processes since adjustments in the project management planning can be done after the identification of the projects’ challenges. The risk register framework is used to support the risk management process in order to eliminate the negative impact that the various threats might have on a project. Threats could come from the external and internal environment of the company. The external risks are associated with the economic, social, political, and technological environment, while the internal threats include risks that are related to human actions and estimations. For example, it is possible for people to make wrong estimations because of inexperience and underestimation of some threats. This high level of uncertainty makes it increasingly necessary to use a model that assists the risk management process in a more effective way. <ref name="Pmi" />, <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>.
=== The role of Risk Register ===
In ''‘Practice Standard for Project Risk Management’'', the risk register is defined as the framework that is used in project risk management for the documentation of the identified risks. <ref name="Pmi" /> It records all the needed information that will be the steppingstone to overcome the risks that might menace projects' success. <ref name="Pmi" /> It is worth noting that based on ''‘PRINCE2’'', the risks are divided into threats and opportunities. Threats are the risks that could have negative consequences for the project, while opportunities could bring positive outcomes to the company. <ref name="PRINCE"> Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017) Retrieved from: https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=4863041</ref> The article is mainly focused on the documentation of the various threats in the risk register. The importance of the tool is highlighted in the fact that it can assist project managers with tackling potential threats and to have a better and clearer overview of the internal and external risks that might negatively affect the success of the project. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref> The aim of the risk register is to record information related to the identification, assessment, evaluation of importance, and managing of the potential risks. <ref name="Pmi" />, <ref name="PRINCE" /> More specifically, the uncertainty that exists in projects makes it necessary to use a model that provides various information for the events that could threaten the projects. <ref name="Pmi" />

In the ''‘PMBOK guide ’ ''it is outlined that the tool risk register can be used in different phases of a project. Firstly, it can be used at a very early stage of a project in order to provide information for the risks that might be a threat. Secondly, as the project continues, new threats are recorded and documented in the risk register. In other words, it is used to update the new risks and inform the risk owners how they should monitor the new threats. Finally, it documents all the risks that have been recorded after the completion of a project. <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>

=== Elements of Risk Register===

As can be seen in figure 1, the implementation of the risk register model follows four processes. Firstly, the risks have to be identified. Secondly, they have to be assessed based on their impact and probability. After risk assessment, it is important to define the actions that must be taken, in order to manage the risks. The final process of the risk register model follows, deals with the ways the risks can be monitored. <ref name="Pmi" />, <ref name="ot" />, <ref name="PRINCE"/> The outcome of the previously mentioned processes is the input for the risk register framework.

[[File:Screenshot 2021-02-25 221935.png‎|center|thumb|310px|Figure 1: Implementation steps of Risk Register (own figure, based on <ref name="Pmi" /> and <ref name="PRINCE"/>) ]]

Risk register has the form of a table where each column represents different characteristics of the potential risks.<ref name="latvia"> Project Risk Register Analysis Based on the Theoretical Analysis of Project Management Notion of Risk, Juris Uzulāns, University of Latvia, 2016 Retrieved from: https://content.sciendo.com/configurable/contentpage/journals$002feb$002f29$002f1$002farticle-p43.xml </ref> In order to start building the risk register the first step is the identification of the risks. Once the potential threats are known it is vital to provide a brief description for each one. <ref name="Pmi" /> This helps the project managers not only to clarify the risks but also to understand why they are threatening the project’s success. Secondly, for the assessment of the risks, their probability and impact on the project are examined. Furthermore, in'' ‘Practice Standard for Project Risk Management’'' it is stated that the evaluation of the risk is depending on their impact and their frequency to happen.<ref name="Pmi" /> For instance, the risks that have high impact and probability to occur, are risks with higher importance than the risks with low frequency and impact. The identification of the risks’ importance is an essential element for project managers to know which risks are needed more attention and time for setting up a plan in order to overcome them. <ref name="Pmi" /> Furthermore, based on the ''‘PMBOK guide’'' the risk register also includes information about the person who must tackle every risk and the actions that he has to take to eliminate its negative consequences. <ref name="ot" /> Finally, the risks should be monitored in order to prevent unexpected events. <ref name="Pmi" /> The above elements are demanding high attention as they are mainly focused on dominant areas of the risk management process which are the identification of the threats, the evaluation of their importance, and the course of action that should be taken.
[[File:table1111.png‎|center|thumb|600px|Figure 2: Risk Register table (own figure, based on <ref name="Pmi" /> and <ref name="PRINCE"/>) ]]

==How Risk register is used ? ==
In order to have an in-depth understanding of the risk register, it is of utmost importance to analyse the way that it can be used. The tool aims to eliminate the negative impacts of the various threats by identifying, assessing, evaluating, and monitoring them. The following sections provide a guidance on how the four processes of risk register can be implemented.
=== 1. How to identify the risks ===
As a first step, the risks have to be identified by using the right techniques. Once this is complete, a short description of the risks that have been identified through the risk management process is provided.

''' 1.1 Risk identification '''

As it is quoted in ''‘Practice Standard for Project Risk Management’'', ''‘’ A risk cannot be managed unless it is first identified.’’'' <ref name="Pmi" /> (p.25) The identified risks are the first information that will be used in the risk register. <ref name="Pmi" />, <ref name="ot" /> It is worth noting that the risk identification process is continuous because as time passes, the number of information increases. In other words, new risks will become knowable by repeating the risk identification process in different phases of a project. <ref name="Pmi" />

In this article, three methods are used for the risk identification process and all of them are following the ''‘Practice Standard for Project Risk Management’'' <ref name="Pmi" /> (p.28):

*'''''Historical review''''': This technique is used as an analysis of events that happened in the past. When this method, is used it is vital to make sure that the events that are under observation are correlated with risks that happened before in this project or in different projects from the same or different company. This method demands attention as there is the risk to compare data and risks from projects that are not closely connected to the project.
* '''''Current Assessment''''': In this method, the risk identification process is focused on analysing the project’s uncertainty based on the information that is known in this specific period of time.
*''''' Creativity Techniques''''': This approach is based on the creativity of the people who participate in the project. To be more specific, stakeholders have the chance to work individually or with other people in order to identify risks by using creative methods and thinking outside of the box.

All of the techniques mentioned above have both strong points and limitations. This means that if they are used separately, they might lead to inadequate results. Thus, the combination of the three techniques can guarantee more accurate results. <ref name="Pmi" /> (p.28)

''' 1.2 Risk description'''

The description of the identified risks is a very important component of the risk identification process. It is a way to make sure that the risks are well communicated and understood among all the stakeholders. <ref name="ppp"> Guide to Using a Risk Register, Stephanie Ray, https://www.projectmanager.com/blog/guide-using-risk-register Accessed on 19/02/2020 </ref> For instance, in a construction problem, it is identified that a potential risk could be a shock in the economy. A potential explanation is that a shock in the economy could increase the price of raw materials and as a result the project might exceed the agreed budget. As it could be observed, the description of this risk could give a better insight into what this change might impact.

=== 2. How to assess the risks ===
The assessment of the various risks could be applied by using two methods, namely, the qualitative and quantitative risk analysis. Both methods are used to evaluate risks’ importance to the project. This includes an analysis of the probability that each risk has to occur and the impact that they might have on the project. <ref name="Pmi" /> In this article, the assessment of the identified risks is following the ''‘’ Practice Standard for Project Risk Management‘’ '' and the''‘’ PMBOK guide ‘’ ''.

* '''Qualitative risk analysis''' <ref name="Pmi" />,<ref name="ot" />

In qualitative risk analysis, the risks are evaluated and ranked based on their probability, impact, and some other characteristics that have been defined before the implementation of the analysis. This analysis is implemented regularly as new threats might need to be identified. The basic components of qualitative risk analysis are the high or low probability of a risk to happen and the consequences that it might have in ''‘’ one or more project objectives such as schedule, cost, quality, or performance.’’'' <ref name="ot" /> (p.423) Additionally, in qualitative risk analysis the risks can be grouped based on various criteria. For example, they can be grouped by risks that might exceed projects’ deadlines. This way, the project management team could monitor the risks in a more effective way since not only they will know the project areas they need to pay more attention to, but they will also have a quicker response managing the threats of the several categories.

* '''Quantitative risk analysis''' <ref name="Pmi" />,<ref name="ot" />

The quantitative risk analysis is used to calculate risks’ effects on the project. While this numerical analysis is not considered vital for all the projects, it provides more pragmatistic results. The implementation of the quantitative risk analysis follows on from the qualitative risk analysis. This could be explained by the fact that in the qualitative risk analysis the risks are already prioritized and thus the most vital threats are recognized and could be calculated. The impact and the probability are calculated, and the risk register table can be updated with numerical results.

=== 3. How to respond to the risks ===

It is of utmost importance to tackle the identified risks once they have been assessed. In order to do so, it is necessary to perform a risk management plan which will include the actions for dealing with the risks and the person who is responsible to tackle them. As a first step the risks should be known by all the stakeholders. Every potential risk is assigned to the right people. These people are called risk owners and they are responsible with controlling and finding solutions for the risks they are assigned with. The risks could harm the project in various ways and for this reason, there should be a plan with responses for all of them.<ref name="Pmi" /> In the ''‘Practice Standard for Project Risk Management’'' it is written that ''’’ the planning entails agreeing upon the actions to be taken and the potential changes to the budget, schedule, resources, and scope which these actions might cause.’’'' <ref name="Pmi" /> (p.43) Furthermore, the actions that have to be taken for every risk should be developed at the very early stage of its identification. In other words, it is integral to have the strategies and responses in advance so that project’s time schedule will change as little as possible. <ref name="Pmi" /> The risk register includes all the responses and actions on its table. Once new risks are identified risk register is updated with new strategies that the risk owner has to follow. Moreover, throughout the lifecycle of a project, it is possible to make adjustments and corrections to the plans of the previously identified risks. <ref name="ppp" />

=== 4. How to monitor the risks ===

Risk monitoring is the last process that needs to be implemented in order to fill in the risk register table. This final step is as important as the three steps mentioned above. Risk should be monitored throughout the life cycle of a project. It is a continuous process that includes the actions that have to be taken in order to control not only the risks that already have been identified but also the new threats that have to be tamed. <ref name="Pmi" />. <ref name="ot" /> Additionally, risk monitoring is used to certify that all the risk responses are taken place when there is a need for action. This is a way to appraise the effectiveness of the responses and the risk owner in the risk management process. <ref name="Pmi" /> The process starts by checking the risk register table. The table should include the appropriate responses for every risk, otherwise, it has to be updated with the new actions that have to be taken.<ref name="Pmi" /> Moreover, it is important for the new actions and changes to be well communicated to the stakeholders and to the people responsible for that specific risks. The number of information varies at the different stages of a project. More information is available to the project managers as the project continues its processes, which means that changes can be made in the risk register. These changes will be defined during the monitoring process and will be updated and documented in the risk register by providing new information for the actions that have to be changed. <ref name="Pmi" />

In this article, three techniques are analyzed for controlling the risks. These techniques are analyzed in the ''‘PMBOK guide ’'' <ref name="ot" /> (p.456-457) :

* '''Data analysis''': This technique is used to ensure that the reserves of the project are enough to not threaten its budget and the deadlines. <ref name="ot" /> More specifically, this analysis is checking if the reserves that a project has as a backup is enough to ensure that it will have the resources to manage an unexpected event that will make its budget and time exceed the agreed limits. <ref name="Pmi" />

* '''Audits''': This method applied in order to evaluate the performance of the processes included in the risk management and hence they are recorded in the risk register. It is worth noting that this way of monitoring risks can be conducted during project meetings when the project team examines the risks. <ref name="ot" />

* '''Meetings''': During meetings, the project management team can evaluate the various risks. This is a vital process that examines the overall process of risk management planning. More specifically, the meeting can ensure that all the stakeholders have a clear overview of the risks that need to be tackled. Furthermore, it is possible that some of the identified risks happened in the past, and through the meeting, the project management team can communicate the learning outcomes and mistakes that they should avoid in the future. <ref name="ot" />

After these processes, the risk register framework is updated with the new data in order to assist the project management team with the risk management process.

==Reflections==
While many positive outcomes can arise from the use of the risk register framework, there are also some limitations that are worth mentioning. In this section, the advantages and limitations of the risk register framework are discussed.
=== Advantages ===
The risk register is used to document information about the various risks that have been identified not only at the very early stages but also throughout the whole lifecycle of the project. This is an extremely beneficial characteristic of the tool that can be used for the assessment of a project's performance as well as for the strategic and decision-making processes that are related to risk management. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> More specifically, as the project is developing, the amount of gathered information is growing which means that new risks will be identified to threaten the project's success. The risk register table is storing the information from the risks that already have been identified and evaluated, and once new treats have been found, the table is expanded with the new data. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>, <ref name="Pmi" /> This could be vital for the overall success of the project since the new risk could be well communicated among the stakeholders and thus they will be informed for the new actions they have to take in order to eliminate the negative impact of the threats. Additionally, the table includes information that is the output of the qualitative risk analysis. In other words, in the qualitative analysis, it is examined how possible is for a risk to take place and the impact that it will have on the project. This analysis is used to prioritize the risks based on their importance. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>, <ref name="Pmi" /> Once the risks are ranked, the stakeholders are informed of the threats that they have to pay more attention to. This means that they might have to spend more time planning a strategy around these risks as they will have a higher impact. Finally, the risk register is an advantageous tool for complex projects. When a project is very complex, it's important to use tools that could break down the planning processes. Risk register, due to its structure, provides the needed information for every risk from the moment it is identified. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref>

=== Limitations ===
The identified risks are listed based on the critical way of thinking of the people who are associated with the risk evaluation. This could be a limitation since the results on the risk register table might reflect the personal opinion of the people who implemented it and not the reality.<ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>, <ref name="fd"> Why risk registers don't do enough to help you manage risks, https://www.civilsociety.co.uk/finance/why-risk-registers-don-t-do-enough-to-help-you-manage-risks.html, Accessed on 22/02/2020 </ref> Moreover, the development of the risk register table requires a lot of time in order to insert the data from the four processes. Apart from that since the table is updated when changes are made either to the list of the identified risks or to the actions that have to be taken, it is possible that mistakes might occur when the new data are imported. Hence, the implementation of the documented results of the risk register seeks attention in order to avoid mistakes. However, the risk register is more than important when it comes to analysing the risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> This means that even though it is a time-consuming process, the outcomes of the tool can prevent threats that otherwise could have a negative impact on the project.

It is worth noting, that ignoring the limitations of the risk management tool could have a negative impact on the project. Nevertheless, it is a very important tool that should be applied in the risk management processes most or all of the time.

==Annotated bibliography==
* ''PMI Standard for Risk Management (2019)''
This book is based on the PMBOK Guide– Fourth Edition. It is a book about the risk management processes that a project has to follow. It analyses the techniques for the identification, assessment, response, and controlling of the risks. In this book, the reader can find information for the risk register model and how it is involved in all the previously mentioned processes.

* ''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017)''
This book is focused on how to manage projects based on PRINCE2 principles. It describes how the different activities of a product based on its implementation stage. Risks analysis is also explained in one of the chapters of the book. In this book, the various stages of the risk management process are explained by providing the needing theory and well-explained figures.

* ''Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017)''
The book A guide to the Project Management Body of Knowledge provides detailed information on how to manage projects. The risk register framework is analyzed in the chapters of the book by providing information on the usage of the tool in the various processes of risk management. Moreover, it is explained the characteristics that should be involved in the risk register table. The study of the various techniques that are used in the risk management planning of the article is based on the analysis of this book.

==References==
<references/>

File:Table1111.png

2021-02-28T17:32:56Z

Dorothea Georgiadou:

Risk Register analysis

2021-02-28T17:29:27Z

Dorothea Georgiadou: /* 4. How to monitor the risks */

Developed by Dorothea Georgiadou

In an age where the economic, social, and political environment is constantly shifting, there is an urgent need to study the risks that may threaten the success of a project. It is particularly important to study the risks that may adversely affect the project and lead to events that might have as a consequence the exceeding of the agreed budget and time. For this reason, the risk management planning should identify and describe in detail the potential risks by providing the needed information for the actions that should be done for eliminating their negative impact. The high uncertainty that exists in projects necessitates the use of a management tool that will control the risks. <ref name="Pmi"> Project Mangement Institute. "Practice standard for project risk management." Project Management Institute, 2009. </ref> In this article the risk management framework ‘’Risk register’’ is explained. The risk register is a tool that covers and studies many aspects of risk management processes. More specifically, the aim of this article is to explain how this tool can be used to document the outcomes of the risk management processes. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013, Retrieved from:https://www.researchgate.net/publication/263528336_Risk_register_developement_and_implementation_for_construction_projects </ref> The article provides a description of the tool along with the reasons that it should be used. It is a framework that aims to record the information from the processes related to the identification, assessment, responding, and monitoring of potential risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. Finally, the article analyzes along with the benefits also the limitations of this risk management tool.

== Why use risk register? ==
In an ever-changing environment, a projects’ success is associated with a high level of uncertainty. In the ‘Practice Standard for Project Risk Management’, risk management is an approach that plays a vital role in the strategic and decision-making processes since adjustments in the project management planning can be done after the identification of the projects’ challenges. The risk register framework is used to support the risk management process in order to eliminate the negative impact that the various threats might have on a project. Threats could come from the external and internal environment of the company. The external risks are associated with the economic, social, political, and technological environment, while the internal threats include risks that are related to human actions and estimations. For example, it is possible for people to make wrong estimations because of inexperience and underestimation of some threats. This high level of uncertainty makes it increasingly necessary to use a model that assists the risk management process in a more effective way. <ref name="Pmi" />, <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>.
=== The role of Risk Register ===
In ''‘Practice Standard for Project Risk Management’'', the risk register is defined as the framework that is used in project risk management for the documentation of the identified risks. <ref name="Pmi" /> It records all the needed information that will be the steppingstone to overcome the risks that might menace projects' success. <ref name="Pmi" /> It is worth noting that based on ''‘PRINCE2’'', the risks are divided into threats and opportunities. Threats are the risks that could have negative consequences for the project, while opportunities could bring positive outcomes to the company. <ref name="PRINCE"> Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017) Retrieved from: https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=4863041</ref> The article is mainly focused on the documentation of the various threats in the risk register. The importance of the tool is highlighted in the fact that it can assist project managers with tackling potential threats and to have a better and clearer overview of the internal and external risks that might negatively affect the success of the project. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref> The aim of the risk register is to record information related to the identification, assessment, evaluation of importance, and managing of the potential risks. <ref name="Pmi" />, <ref name="PRINCE" /> More specifically, the uncertainty that exists in projects makes it necessary to use a model that provides various information for the events that could threaten the projects. <ref name="Pmi" />

In the ''‘PMBOK guide ’ ''it is outlined that the tool risk register can be used in different phases of a project. Firstly, it can be used at a very early stage of a project in order to provide information for the risks that might be a threat. Secondly, as the project continues, new threats are recorded and documented in the risk register. In other words, it is used to update the new risks and inform the risk owners how they should monitor the new threats. Finally, it documents all the risks that have been recorded after the completion of a project. <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>

=== Elements of Risk Register===

As can be seen in figure 1, the implementation of the risk register model follows four processes. Firstly, the risks have to be identified. Secondly, they have to be assessed based on their impact and probability. After risk assessment, it is important to define the actions that must be taken, in order to manage the risks. The final process of the risk register model follows, deals with the ways the risks can be monitored. <ref name="Pmi" />, <ref name="ot" />, <ref name="PRINCE"/> The outcome of the previously mentioned processes is the input for the risk register framework.

[[File:Screenshot 2021-02-25 221935.png‎|center|thumb|310px|Figure 1: Implementation steps of Risk Register (own figure, based on <ref name="Pmi" /> and <ref name="PRINCE"/>) ]]

Risk register has the form of a table where each column represents different characteristics of the potential risks.<ref name="latvia"> Project Risk Register Analysis Based on the Theoretical Analysis of Project Management Notion of Risk, Juris Uzulāns, University of Latvia, 2016 Retrieved from: https://content.sciendo.com/configurable/contentpage/journals$002feb$002f29$002f1$002farticle-p43.xml </ref> In order to start building the risk register the first step is the identification of the risks. Once the potential threats are known it is vital to provide a brief description for each one. <ref name="Pmi" /> This helps the project managers not only to clarify the risks but also to understand why they are threatening the project’s success. Secondly, for the assessment of the risks, their probability and impact on the project are examined. Furthermore, in'' ‘Practice Standard for Project Risk Management’'' it is stated that the evaluation of the risk is depending on their impact and their frequency to happen.<ref name="Pmi" /> For instance, the risks that have high impact and probability to occur, are risks with higher importance than the risks with low frequency and impact. The identification of the risks’ importance is an essential element for project managers to know which risks are needed more attention and time for setting up a plan in order to overcome them. <ref name="Pmi" /> Furthermore, based on the ''‘PMBOK guide’'' the risk register also includes information about the person who must tackle every risk and the actions that he has to take to eliminate its negative consequences. <ref name="ot" /> Finally, the risks should be monitored in order to prevent unexpected events. <ref name="Pmi" /> The above elements are demanding high attention as they are mainly focused on dominant areas of the risk management process which are the identification of the threats, the evaluation of their importance, and the course of action that should be taken.
[[File:Screenshot_2021-02-26_100347.png‎|center|thumb|600px|Figure 2: Risk Register table (own figure, based on <ref name="Pmi" /> and <ref name="PRINCE"/>) ]]

==How Risk register is used ? ==
In order to have an in-depth understanding of the risk register, it is of utmost importance to analyse the way that it can be used. The tool aims to eliminate the negative impacts of the various threats by identifying, assessing, evaluating, and monitoring them. The following sections provide a guidance on how the four processes of risk register can be implemented.
=== 1. How to identify the risks ===
As a first step, the risks have to be identified by using the right techniques. Once this is complete, a short description of the risks that have been identified through the risk management process is provided.

''' 1.1 Risk identification '''

As it is quoted in ''‘Practice Standard for Project Risk Management’'', ''‘’ A risk cannot be managed unless it is first identified.’’'' <ref name="Pmi" /> (p.25) The identified risks are the first information that will be used in the risk register. <ref name="Pmi" />, <ref name="ot" /> It is worth noting that the risk identification process is continuous because as time passes, the number of information increases. In other words, new risks will become knowable by repeating the risk identification process in different phases of a project. <ref name="Pmi" />

In this article, three methods are used for the risk identification process and all of them are following the ''‘Practice Standard for Project Risk Management’'' <ref name="Pmi" /> (p.28):

*'''''Historical review''''': This technique is used as an analysis of events that happened in the past. When this method, is used it is vital to make sure that the events that are under observation are correlated with risks that happened before in this project or in different projects from the same or different company. This method demands attention as there is the risk to compare data and risks from projects that are not closely connected to the project.
* '''''Current Assessment''''': In this method, the risk identification process is focused on analysing the project’s uncertainty based on the information that is known in this specific period of time.
*''''' Creativity Techniques''''': This approach is based on the creativity of the people who participate in the project. To be more specific, stakeholders have the chance to work individually or with other people in order to identify risks by using creative methods and thinking outside of the box.

All of the techniques mentioned above have both strong points and limitations. This means that if they are used separately, they might lead to inadequate results. Thus, the combination of the three techniques can guarantee more accurate results. <ref name="Pmi" /> (p.28)

''' 1.2 Risk description'''

The description of the identified risks is a very important component of the risk identification process. It is a way to make sure that the risks are well communicated and understood among all the stakeholders. <ref name="ppp"> Guide to Using a Risk Register, Stephanie Ray, https://www.projectmanager.com/blog/guide-using-risk-register Accessed on 19/02/2020 </ref> For instance, in a construction problem, it is identified that a potential risk could be a shock in the economy. A potential explanation is that a shock in the economy could increase the price of raw materials and as a result the project might exceed the agreed budget. As it could be observed, the description of this risk could give a better insight into what this change might impact.

=== 2. How to assess the risks ===
The assessment of the various risks could be applied by using two methods, namely, the qualitative and quantitative risk analysis. Both methods are used to evaluate risks’ importance to the project. This includes an analysis of the probability that each risk has to occur and the impact that they might have on the project. <ref name="Pmi" /> In this article, the assessment of the identified risks is following the ''‘’ Practice Standard for Project Risk Management‘’ '' and the''‘’ PMBOK guide ‘’ ''.

* '''Qualitative risk analysis''' <ref name="Pmi" />,<ref name="ot" />

In qualitative risk analysis, the risks are evaluated and ranked based on their probability, impact, and some other characteristics that have been defined before the implementation of the analysis. This analysis is implemented regularly as new threats might need to be identified. The basic components of qualitative risk analysis are the high or low probability of a risk to happen and the consequences that it might have in ''‘’ one or more project objectives such as schedule, cost, quality, or performance.’’'' <ref name="ot" /> (p.423) Additionally, in qualitative risk analysis the risks can be grouped based on various criteria. For example, they can be grouped by risks that might exceed projects’ deadlines. This way, the project management team could monitor the risks in a more effective way since not only they will know the project areas they need to pay more attention to, but they will also have a quicker response managing the threats of the several categories.

* '''Quantitative risk analysis''' <ref name="Pmi" />,<ref name="ot" />

The quantitative risk analysis is used to calculate risks’ effects on the project. While this numerical analysis is not considered vital for all the projects, it provides more pragmatistic results. The implementation of the quantitative risk analysis follows on from the qualitative risk analysis. This could be explained by the fact that in the qualitative risk analysis the risks are already prioritized and thus the most vital threats are recognized and could be calculated. The impact and the probability are calculated, and the risk register table can be updated with numerical results.

=== 3. How to respond to the risks ===

It is of utmost importance to tackle the identified risks once they have been assessed. In order to do so, it is necessary to perform a risk management plan which will include the actions for dealing with the risks and the person who is responsible to tackle them. As a first step the risks should be known by all the stakeholders. Every potential risk is assigned to the right people. These people are called risk owners and they are responsible with controlling and finding solutions for the risks they are assigned with. The risks could harm the project in various ways and for this reason, there should be a plan with responses for all of them.<ref name="Pmi" /> In the ''‘Practice Standard for Project Risk Management’'' it is written that ''’’ the planning entails agreeing upon the actions to be taken and the potential changes to the budget, schedule, resources, and scope which these actions might cause.’’'' <ref name="Pmi" /> (p.43) Furthermore, the actions that have to be taken for every risk should be developed at the very early stage of its identification. In other words, it is integral to have the strategies and responses in advance so that project’s time schedule will change as little as possible. <ref name="Pmi" /> The risk register includes all the responses and actions on its table. Once new risks are identified risk register is updated with new strategies that the risk owner has to follow. Moreover, throughout the lifecycle of a project, it is possible to make adjustments and corrections to the plans of the previously identified risks. <ref name="ppp" />

=== 4. How to monitor the risks ===

Risk monitoring is the last process that needs to be implemented in order to fill in the risk register table. This final step is as important as the three steps mentioned above. Risk should be monitored throughout the life cycle of a project. It is a continuous process that includes the actions that have to be taken in order to control not only the risks that already have been identified but also the new threats that have to be tamed. <ref name="Pmi" />. <ref name="ot" /> Additionally, risk monitoring is used to certify that all the risk responses are taken place when there is a need for action. This is a way to appraise the effectiveness of the responses and the risk owner in the risk management process. <ref name="Pmi" /> The process starts by checking the risk register table. The table should include the appropriate responses for every risk, otherwise, it has to be updated with the new actions that have to be taken.<ref name="Pmi" /> Moreover, it is important for the new actions and changes to be well communicated to the stakeholders and to the people responsible for that specific risks. The number of information varies at the different stages of a project. More information is available to the project managers as the project continues its processes, which means that changes can be made in the risk register. These changes will be defined during the monitoring process and will be updated and documented in the risk register by providing new information for the actions that have to be changed. <ref name="Pmi" />

In this article, three techniques are analyzed for controlling the risks. These techniques are analyzed in the ''‘PMBOK guide ’'' <ref name="ot" /> (p.456-457) :

* '''Data analysis''': This technique is used to ensure that the reserves of the project are enough to not threaten its budget and the deadlines. <ref name="ot" /> More specifically, this analysis is checking if the reserves that a project has as a backup is enough to ensure that it will have the resources to manage an unexpected event that will make its budget and time exceed the agreed limits. <ref name="Pmi" />

* '''Audits''': This method applied in order to evaluate the performance of the processes included in the risk management and hence they are recorded in the risk register. It is worth noting that this way of monitoring risks can be conducted during project meetings when the project team examines the risks. <ref name="ot" />

* '''Meetings''': During meetings, the project management team can evaluate the various risks. This is a vital process that examines the overall process of risk management planning. More specifically, the meeting can ensure that all the stakeholders have a clear overview of the risks that need to be tackled. Furthermore, it is possible that some of the identified risks happened in the past, and through the meeting, the project management team can communicate the learning outcomes and mistakes that they should avoid in the future. <ref name="ot" />

After these processes, the risk register framework is updated with the new data in order to assist the project management team with the risk management process.

==Reflections==
While many positive outcomes can arise from the use of the risk register framework, there are also some limitations that are worth mentioning. In this section, the advantages and limitations of the risk register framework are discussed.
=== Advantages ===
The risk register is used to document information about the various risks that have been identified not only at the very early stages but also throughout the whole lifecycle of the project. This is an extremely beneficial characteristic of the tool that can be used for the assessment of a project's performance as well as for the strategic and decision-making processes that are related to risk management. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> More specifically, as the project is developing, the amount of gathered information is growing which means that new risks will be identified to threaten the project's success. The risk register table is storing the information from the risks that already have been identified and evaluated, and once new treats have been found, the table is expanded with the new data. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>, <ref name="Pmi" /> This could be vital for the overall success of the project since the new risk could be well communicated among the stakeholders and thus they will be informed for the new actions they have to take in order to eliminate the negative impact of the threats. Additionally, the table includes information that is the output of the qualitative risk analysis. In other words, in the qualitative analysis, it is examined how possible is for a risk to take place and the impact that it will have on the project. This analysis is used to prioritize the risks based on their importance. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>, <ref name="Pmi" /> Once the risks are ranked, the stakeholders are informed of the threats that they have to pay more attention to. This means that they might have to spend more time planning a strategy around these risks as they will have a higher impact. Finally, the risk register is an advantageous tool for complex projects. When a project is very complex, it's important to use tools that could break down the planning processes. Risk register, due to its structure, provides the needed information for every risk from the moment it is identified. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref>

=== Limitations ===
The identified risks are listed based on the critical way of thinking of the people who are associated with the risk evaluation. This could be a limitation since the results on the risk register table might reflect the personal opinion of the people who implemented it and not the reality.<ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>, <ref name="fd"> Why risk registers don't do enough to help you manage risks, https://www.civilsociety.co.uk/finance/why-risk-registers-don-t-do-enough-to-help-you-manage-risks.html, Accessed on 22/02/2020 </ref> Moreover, the development of the risk register table requires a lot of time in order to insert the data from the four processes. Apart from that since the table is updated when changes are made either to the list of the identified risks or to the actions that have to be taken, it is possible that mistakes might occur when the new data are imported. Hence, the implementation of the documented results of the risk register seeks attention in order to avoid mistakes. However, the risk register is more than important when it comes to analysing the risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> This means that even though it is a time-consuming process, the outcomes of the tool can prevent threats that otherwise could have a negative impact on the project.

It is worth noting, that ignoring the limitations of the risk management tool could have a negative impact on the project. Nevertheless, it is a very important tool that should be applied in the risk management processes most or all of the time.

==Annotated bibliography==
* ''PMI Standard for Risk Management (2019)''
This book is based on the PMBOK Guide– Fourth Edition. It is a book about the risk management processes that a project has to follow. It analyses the techniques for the identification, assessment, response, and controlling of the risks. In this book, the reader can find information for the risk register model and how it is involved in all the previously mentioned processes.

* ''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017)''
This book is focused on how to manage projects based on PRINCE2 principles. It describes how the different activities of a product based on its implementation stage. Risks analysis is also explained in one of the chapters of the book. In this book, the various stages of the risk management process are explained by providing the needing theory and well-explained figures.

* ''Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017)''
The book A guide to the Project Management Body of Knowledge provides detailed information on how to manage projects. The risk register framework is analyzed in the chapters of the book by providing information on the usage of the tool in the various processes of risk management. Moreover, it is explained the characteristics that should be involved in the risk register table. The study of the various techniques that are used in the risk management planning of the article is based on the analysis of this book.

==References==
<references/>

Risk Register analysis

2021-02-28T17:28:20Z

Dorothea Georgiadou: /* 4. How to monitor the risks */

Developed by Dorothea Georgiadou

In an age where the economic, social, and political environment is constantly shifting, there is an urgent need to study the risks that may threaten the success of a project. It is particularly important to study the risks that may adversely affect the project and lead to events that might have as a consequence the exceeding of the agreed budget and time. For this reason, the risk management planning should identify and describe in detail the potential risks by providing the needed information for the actions that should be done for eliminating their negative impact. The high uncertainty that exists in projects necessitates the use of a management tool that will control the risks. <ref name="Pmi"> Project Mangement Institute. "Practice standard for project risk management." Project Management Institute, 2009. </ref> In this article the risk management framework ‘’Risk register’’ is explained. The risk register is a tool that covers and studies many aspects of risk management processes. More specifically, the aim of this article is to explain how this tool can be used to document the outcomes of the risk management processes. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013, Retrieved from:https://www.researchgate.net/publication/263528336_Risk_register_developement_and_implementation_for_construction_projects </ref> The article provides a description of the tool along with the reasons that it should be used. It is a framework that aims to record the information from the processes related to the identification, assessment, responding, and monitoring of potential risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. Finally, the article analyzes along with the benefits also the limitations of this risk management tool.

== Why use risk register? ==
In an ever-changing environment, a projects’ success is associated with a high level of uncertainty. In the ‘Practice Standard for Project Risk Management’, risk management is an approach that plays a vital role in the strategic and decision-making processes since adjustments in the project management planning can be done after the identification of the projects’ challenges. The risk register framework is used to support the risk management process in order to eliminate the negative impact that the various threats might have on a project. Threats could come from the external and internal environment of the company. The external risks are associated with the economic, social, political, and technological environment, while the internal threats include risks that are related to human actions and estimations. For example, it is possible for people to make wrong estimations because of inexperience and underestimation of some threats. This high level of uncertainty makes it increasingly necessary to use a model that assists the risk management process in a more effective way. <ref name="Pmi" />, <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>.
=== The role of Risk Register ===
In ''‘Practice Standard for Project Risk Management’'', the risk register is defined as the framework that is used in project risk management for the documentation of the identified risks. <ref name="Pmi" /> It records all the needed information that will be the steppingstone to overcome the risks that might menace projects' success. <ref name="Pmi" /> It is worth noting that based on ''‘PRINCE2’'', the risks are divided into threats and opportunities. Threats are the risks that could have negative consequences for the project, while opportunities could bring positive outcomes to the company. <ref name="PRINCE"> Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017) Retrieved from: https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=4863041</ref> The article is mainly focused on the documentation of the various threats in the risk register. The importance of the tool is highlighted in the fact that it can assist project managers with tackling potential threats and to have a better and clearer overview of the internal and external risks that might negatively affect the success of the project. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref> The aim of the risk register is to record information related to the identification, assessment, evaluation of importance, and managing of the potential risks. <ref name="Pmi" />, <ref name="PRINCE" /> More specifically, the uncertainty that exists in projects makes it necessary to use a model that provides various information for the events that could threaten the projects. <ref name="Pmi" />

In the ''‘PMBOK guide ’ ''it is outlined that the tool risk register can be used in different phases of a project. Firstly, it can be used at a very early stage of a project in order to provide information for the risks that might be a threat. Secondly, as the project continues, new threats are recorded and documented in the risk register. In other words, it is used to update the new risks and inform the risk owners how they should monitor the new threats. Finally, it documents all the risks that have been recorded after the completion of a project. <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>

=== Elements of Risk Register===

As can be seen in figure 1, the implementation of the risk register model follows four processes. Firstly, the risks have to be identified. Secondly, they have to be assessed based on their impact and probability. After risk assessment, it is important to define the actions that must be taken, in order to manage the risks. The final process of the risk register model follows, deals with the ways the risks can be monitored. <ref name="Pmi" />, <ref name="ot" />, <ref name="PRINCE"/> The outcome of the previously mentioned processes is the input for the risk register framework.

[[File:Screenshot 2021-02-25 221935.png‎|center|thumb|310px|Figure 1: Implementation steps of Risk Register (own figure, based on <ref name="Pmi" /> and <ref name="PRINCE"/>) ]]

Risk register has the form of a table where each column represents different characteristics of the potential risks.<ref name="latvia"> Project Risk Register Analysis Based on the Theoretical Analysis of Project Management Notion of Risk, Juris Uzulāns, University of Latvia, 2016 Retrieved from: https://content.sciendo.com/configurable/contentpage/journals$002feb$002f29$002f1$002farticle-p43.xml </ref> In order to start building the risk register the first step is the identification of the risks. Once the potential threats are known it is vital to provide a brief description for each one. <ref name="Pmi" /> This helps the project managers not only to clarify the risks but also to understand why they are threatening the project’s success. Secondly, for the assessment of the risks, their probability and impact on the project are examined. Furthermore, in'' ‘Practice Standard for Project Risk Management’'' it is stated that the evaluation of the risk is depending on their impact and their frequency to happen.<ref name="Pmi" /> For instance, the risks that have high impact and probability to occur, are risks with higher importance than the risks with low frequency and impact. The identification of the risks’ importance is an essential element for project managers to know which risks are needed more attention and time for setting up a plan in order to overcome them. <ref name="Pmi" /> Furthermore, based on the ''‘PMBOK guide’'' the risk register also includes information about the person who must tackle every risk and the actions that he has to take to eliminate its negative consequences. <ref name="ot" /> Finally, the risks should be monitored in order to prevent unexpected events. <ref name="Pmi" /> The above elements are demanding high attention as they are mainly focused on dominant areas of the risk management process which are the identification of the threats, the evaluation of their importance, and the course of action that should be taken.
[[File:Screenshot_2021-02-26_100347.png‎|center|thumb|600px|Figure 2: Risk Register table (own figure, based on <ref name="Pmi" /> and <ref name="PRINCE"/>) ]]

==How Risk register is used ? ==
In order to have an in-depth understanding of the risk register, it is of utmost importance to analyse the way that it can be used. The tool aims to eliminate the negative impacts of the various threats by identifying, assessing, evaluating, and monitoring them. The following sections provide a guidance on how the four processes of risk register can be implemented.
=== 1. How to identify the risks ===
As a first step, the risks have to be identified by using the right techniques. Once this is complete, a short description of the risks that have been identified through the risk management process is provided.

''' 1.1 Risk identification '''

As it is quoted in ''‘Practice Standard for Project Risk Management’'', ''‘’ A risk cannot be managed unless it is first identified.’’'' <ref name="Pmi" /> (p.25) The identified risks are the first information that will be used in the risk register. <ref name="Pmi" />, <ref name="ot" /> It is worth noting that the risk identification process is continuous because as time passes, the number of information increases. In other words, new risks will become knowable by repeating the risk identification process in different phases of a project. <ref name="Pmi" />

In this article, three methods are used for the risk identification process and all of them are following the ''‘Practice Standard for Project Risk Management’'' <ref name="Pmi" /> (p.28):

*'''''Historical review''''': This technique is used as an analysis of events that happened in the past. When this method, is used it is vital to make sure that the events that are under observation are correlated with risks that happened before in this project or in different projects from the same or different company. This method demands attention as there is the risk to compare data and risks from projects that are not closely connected to the project.
* '''''Current Assessment''''': In this method, the risk identification process is focused on analysing the project’s uncertainty based on the information that is known in this specific period of time.
*''''' Creativity Techniques''''': This approach is based on the creativity of the people who participate in the project. To be more specific, stakeholders have the chance to work individually or with other people in order to identify risks by using creative methods and thinking outside of the box.

All of the techniques mentioned above have both strong points and limitations. This means that if they are used separately, they might lead to inadequate results. Thus, the combination of the three techniques can guarantee more accurate results. <ref name="Pmi" /> (p.28)

''' 1.2 Risk description'''

The description of the identified risks is a very important component of the risk identification process. It is a way to make sure that the risks are well communicated and understood among all the stakeholders. <ref name="ppp"> Guide to Using a Risk Register, Stephanie Ray, https://www.projectmanager.com/blog/guide-using-risk-register Accessed on 19/02/2020 </ref> For instance, in a construction problem, it is identified that a potential risk could be a shock in the economy. A potential explanation is that a shock in the economy could increase the price of raw materials and as a result the project might exceed the agreed budget. As it could be observed, the description of this risk could give a better insight into what this change might impact.

=== 2. How to assess the risks ===
The assessment of the various risks could be applied by using two methods, namely, the qualitative and quantitative risk analysis. Both methods are used to evaluate risks’ importance to the project. This includes an analysis of the probability that each risk has to occur and the impact that they might have on the project. <ref name="Pmi" /> In this article, the assessment of the identified risks is following the ''‘’ Practice Standard for Project Risk Management‘’ '' and the''‘’ PMBOK guide ‘’ ''.

* '''Qualitative risk analysis''' <ref name="Pmi" />,<ref name="ot" />

In qualitative risk analysis, the risks are evaluated and ranked based on their probability, impact, and some other characteristics that have been defined before the implementation of the analysis. This analysis is implemented regularly as new threats might need to be identified. The basic components of qualitative risk analysis are the high or low probability of a risk to happen and the consequences that it might have in ''‘’ one or more project objectives such as schedule, cost, quality, or performance.’’'' <ref name="ot" /> (p.423) Additionally, in qualitative risk analysis the risks can be grouped based on various criteria. For example, they can be grouped by risks that might exceed projects’ deadlines. This way, the project management team could monitor the risks in a more effective way since not only they will know the project areas they need to pay more attention to, but they will also have a quicker response managing the threats of the several categories.

* '''Quantitative risk analysis''' <ref name="Pmi" />,<ref name="ot" />

The quantitative risk analysis is used to calculate risks’ effects on the project. While this numerical analysis is not considered vital for all the projects, it provides more pragmatistic results. The implementation of the quantitative risk analysis follows on from the qualitative risk analysis. This could be explained by the fact that in the qualitative risk analysis the risks are already prioritized and thus the most vital threats are recognized and could be calculated. The impact and the probability are calculated, and the risk register table can be updated with numerical results.

=== 3. How to respond to the risks ===

It is of utmost importance to tackle the identified risks once they have been assessed. In order to do so, it is necessary to perform a risk management plan which will include the actions for dealing with the risks and the person who is responsible to tackle them. As a first step the risks should be known by all the stakeholders. Every potential risk is assigned to the right people. These people are called risk owners and they are responsible with controlling and finding solutions for the risks they are assigned with. The risks could harm the project in various ways and for this reason, there should be a plan with responses for all of them.<ref name="Pmi" /> In the ''‘Practice Standard for Project Risk Management’'' it is written that ''’’ the planning entails agreeing upon the actions to be taken and the potential changes to the budget, schedule, resources, and scope which these actions might cause.’’'' <ref name="Pmi" /> (p.43) Furthermore, the actions that have to be taken for every risk should be developed at the very early stage of its identification. In other words, it is integral to have the strategies and responses in advance so that project’s time schedule will change as little as possible. <ref name="Pmi" /> The risk register includes all the responses and actions on its table. Once new risks are identified risk register is updated with new strategies that the risk owner has to follow. Moreover, throughout the lifecycle of a project, it is possible to make adjustments and corrections to the plans of the previously identified risks. <ref name="ppp" />

=== 4. How to monitor the risks ===

Risk monitoring is the last process that needs to be implemented in order to fill in the risk register table. This final step is as important as the three steps mentioned above. Risk should be monitored throughout the life cycle of a project. It is a continuous process that includes the actions that have to be taken in order to control not only the risks that already have been identified but also the new threats that have to be tamed. <ref name="Pmi" />. <ref name="ot" /> Additionally, risk monitoring is used to certify that all the risk responses are taken place when there is a need for action. This is a way to appraise the effectiveness of the responses and the risk owner in the risk management process. <ref name="Pmi" /> The process starts by checking the risk register table. The table should include the appropriate responses for every risk, otherwise, it has to be updated with the new actions that have to be taken.<ref name="Pmi" /> Moreover, it is important for the new actions and changes to be well communicated to the stakeholders and to the people responsible for that specific risks. The number of information varies at the different stages of a project. More information is available to the project managers as the project continues its processes, which means that changes can be made in the risk register. These changes will be defined during the monitoring process and will be updated and documented in the risk register by providing new information for the actions that have to be changed. <ref name="Pmi" />

In this article, three techniques are analyzed for controlling the risks. These techniques are analyzed in the ''‘PMBOK guide ’'' <ref name="ot" /> (p.456-457) :

* '''Data analysis''': This technique is used to ensure that the reserves of the project are enough to not threaten its budget and the deadlines. <ref name="ot" /> More specifically, this analysis is checking if the reserves that a project has as a backup is enough to ensure that it will have the resources to manage an unexpected event that will make its budget and time exceed the agreed limits. <ref name="Pmi" />

* '''Audits''': This method applied in order to evaluate the performance of the processes included in the risk management and hence they are recorded in the risk register. <ref name="ot" /> It is worth noting that this way of monitoring risks can be conducted during project meetings when the project team examines the risks. <ref name="ot" />

* '''Meetings''': During meetings, the project management team can evaluate the various risks. This is a vital process that examines the overall process of risk management planning. More specifically, the meeting can ensure that all the stakeholders have a clear overview of the risks that need to be tackled. Furthermore, it is possible that some of the identified risks happened in the past, and through the meeting, the project management team can communicate the learning outcomes and mistakes that they should avoid in the future. <ref name="ot" />

After these processes, the risk register framework is updated with the new data in order to assist the project management team with the risk management process.

==Reflections==
While many positive outcomes can arise from the use of the risk register framework, there are also some limitations that are worth mentioning. In this section, the advantages and limitations of the risk register framework are discussed.
=== Advantages ===
The risk register is used to document information about the various risks that have been identified not only at the very early stages but also throughout the whole lifecycle of the project. This is an extremely beneficial characteristic of the tool that can be used for the assessment of a project's performance as well as for the strategic and decision-making processes that are related to risk management. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> More specifically, as the project is developing, the amount of gathered information is growing which means that new risks will be identified to threaten the project's success. The risk register table is storing the information from the risks that already have been identified and evaluated, and once new treats have been found, the table is expanded with the new data. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>, <ref name="Pmi" /> This could be vital for the overall success of the project since the new risk could be well communicated among the stakeholders and thus they will be informed for the new actions they have to take in order to eliminate the negative impact of the threats. Additionally, the table includes information that is the output of the qualitative risk analysis. In other words, in the qualitative analysis, it is examined how possible is for a risk to take place and the impact that it will have on the project. This analysis is used to prioritize the risks based on their importance. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>, <ref name="Pmi" /> Once the risks are ranked, the stakeholders are informed of the threats that they have to pay more attention to. This means that they might have to spend more time planning a strategy around these risks as they will have a higher impact. Finally, the risk register is an advantageous tool for complex projects. When a project is very complex, it's important to use tools that could break down the planning processes. Risk register, due to its structure, provides the needed information for every risk from the moment it is identified. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref>

=== Limitations ===
The identified risks are listed based on the critical way of thinking of the people who are associated with the risk evaluation. This could be a limitation since the results on the risk register table might reflect the personal opinion of the people who implemented it and not the reality.<ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>, <ref name="fd"> Why risk registers don't do enough to help you manage risks, https://www.civilsociety.co.uk/finance/why-risk-registers-don-t-do-enough-to-help-you-manage-risks.html, Accessed on 22/02/2020 </ref> Moreover, the development of the risk register table requires a lot of time in order to insert the data from the four processes. Apart from that since the table is updated when changes are made either to the list of the identified risks or to the actions that have to be taken, it is possible that mistakes might occur when the new data are imported. Hence, the implementation of the documented results of the risk register seeks attention in order to avoid mistakes. However, the risk register is more than important when it comes to analysing the risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> This means that even though it is a time-consuming process, the outcomes of the tool can prevent threats that otherwise could have a negative impact on the project.

It is worth noting, that ignoring the limitations of the risk management tool could have a negative impact on the project. Nevertheless, it is a very important tool that should be applied in the risk management processes most or all of the time.

==Annotated bibliography==
* ''PMI Standard for Risk Management (2019)''
This book is based on the PMBOK Guide– Fourth Edition. It is a book about the risk management processes that a project has to follow. It analyses the techniques for the identification, assessment, response, and controlling of the risks. In this book, the reader can find information for the risk register model and how it is involved in all the previously mentioned processes.

* ''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017)''
This book is focused on how to manage projects based on PRINCE2 principles. It describes how the different activities of a product based on its implementation stage. Risks analysis is also explained in one of the chapters of the book. In this book, the various stages of the risk management process are explained by providing the needing theory and well-explained figures.

* ''Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017)''
The book A guide to the Project Management Body of Knowledge provides detailed information on how to manage projects. The risk register framework is analyzed in the chapters of the book by providing information on the usage of the tool in the various processes of risk management. Moreover, it is explained the characteristics that should be involved in the risk register table. The study of the various techniques that are used in the risk management planning of the article is based on the analysis of this book.

==References==
<references/>

Risk Register analysis

2021-02-28T17:26:38Z

Dorothea Georgiadou: /* 4. How to monitor the risks */

Developed by Dorothea Georgiadou

In an age where the economic, social, and political environment is constantly shifting, there is an urgent need to study the risks that may threaten the success of a project. It is particularly important to study the risks that may adversely affect the project and lead to events that might have as a consequence the exceeding of the agreed budget and time. For this reason, the risk management planning should identify and describe in detail the potential risks by providing the needed information for the actions that should be done for eliminating their negative impact. The high uncertainty that exists in projects necessitates the use of a management tool that will control the risks. <ref name="Pmi"> Project Mangement Institute. "Practice standard for project risk management." Project Management Institute, 2009. </ref> In this article the risk management framework ‘’Risk register’’ is explained. The risk register is a tool that covers and studies many aspects of risk management processes. More specifically, the aim of this article is to explain how this tool can be used to document the outcomes of the risk management processes. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013, Retrieved from:https://www.researchgate.net/publication/263528336_Risk_register_developement_and_implementation_for_construction_projects </ref> The article provides a description of the tool along with the reasons that it should be used. It is a framework that aims to record the information from the processes related to the identification, assessment, responding, and monitoring of potential risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. Finally, the article analyzes along with the benefits also the limitations of this risk management tool.

== Why use risk register? ==
In an ever-changing environment, a projects’ success is associated with a high level of uncertainty. In the ‘Practice Standard for Project Risk Management’, risk management is an approach that plays a vital role in the strategic and decision-making processes since adjustments in the project management planning can be done after the identification of the projects’ challenges. The risk register framework is used to support the risk management process in order to eliminate the negative impact that the various threats might have on a project. Threats could come from the external and internal environment of the company. The external risks are associated with the economic, social, political, and technological environment, while the internal threats include risks that are related to human actions and estimations. For example, it is possible for people to make wrong estimations because of inexperience and underestimation of some threats. This high level of uncertainty makes it increasingly necessary to use a model that assists the risk management process in a more effective way. <ref name="Pmi" />, <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>.
=== The role of Risk Register ===
In ''‘Practice Standard for Project Risk Management’'', the risk register is defined as the framework that is used in project risk management for the documentation of the identified risks. <ref name="Pmi" /> It records all the needed information that will be the steppingstone to overcome the risks that might menace projects' success. <ref name="Pmi" /> It is worth noting that based on ''‘PRINCE2’'', the risks are divided into threats and opportunities. Threats are the risks that could have negative consequences for the project, while opportunities could bring positive outcomes to the company. <ref name="PRINCE"> Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017) Retrieved from: https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=4863041</ref> The article is mainly focused on the documentation of the various threats in the risk register. The importance of the tool is highlighted in the fact that it can assist project managers with tackling potential threats and to have a better and clearer overview of the internal and external risks that might negatively affect the success of the project. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref> The aim of the risk register is to record information related to the identification, assessment, evaluation of importance, and managing of the potential risks. <ref name="Pmi" />, <ref name="PRINCE" /> More specifically, the uncertainty that exists in projects makes it necessary to use a model that provides various information for the events that could threaten the projects. <ref name="Pmi" />

In the ''‘PMBOK guide ’ ''it is outlined that the tool risk register can be used in different phases of a project. Firstly, it can be used at a very early stage of a project in order to provide information for the risks that might be a threat. Secondly, as the project continues, new threats are recorded and documented in the risk register. In other words, it is used to update the new risks and inform the risk owners how they should monitor the new threats. Finally, it documents all the risks that have been recorded after the completion of a project. <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>

=== Elements of Risk Register===

As can be seen in figure 1, the implementation of the risk register model follows four processes. Firstly, the risks have to be identified. Secondly, they have to be assessed based on their impact and probability. After risk assessment, it is important to define the actions that must be taken, in order to manage the risks. The final process of the risk register model follows, deals with the ways the risks can be monitored. <ref name="Pmi" />, <ref name="ot" />, <ref name="PRINCE"/> The outcome of the previously mentioned processes is the input for the risk register framework.

[[File:Screenshot 2021-02-25 221935.png‎|center|thumb|310px|Figure 1: Implementation steps of Risk Register (own figure, based on <ref name="Pmi" /> and <ref name="PRINCE"/>) ]]

Risk register has the form of a table where each column represents different characteristics of the potential risks.<ref name="latvia"> Project Risk Register Analysis Based on the Theoretical Analysis of Project Management Notion of Risk, Juris Uzulāns, University of Latvia, 2016 Retrieved from: https://content.sciendo.com/configurable/contentpage/journals$002feb$002f29$002f1$002farticle-p43.xml </ref> In order to start building the risk register the first step is the identification of the risks. Once the potential threats are known it is vital to provide a brief description for each one. <ref name="Pmi" /> This helps the project managers not only to clarify the risks but also to understand why they are threatening the project’s success. Secondly, for the assessment of the risks, their probability and impact on the project are examined. Furthermore, in'' ‘Practice Standard for Project Risk Management’'' it is stated that the evaluation of the risk is depending on their impact and their frequency to happen.<ref name="Pmi" /> For instance, the risks that have high impact and probability to occur, are risks with higher importance than the risks with low frequency and impact. The identification of the risks’ importance is an essential element for project managers to know which risks are needed more attention and time for setting up a plan in order to overcome them. <ref name="Pmi" /> Furthermore, based on the ''‘PMBOK guide’'' the risk register also includes information about the person who must tackle every risk and the actions that he has to take to eliminate its negative consequences. <ref name="ot" /> Finally, the risks should be monitored in order to prevent unexpected events. <ref name="Pmi" /> The above elements are demanding high attention as they are mainly focused on dominant areas of the risk management process which are the identification of the threats, the evaluation of their importance, and the course of action that should be taken.
[[File:Screenshot_2021-02-26_100347.png‎|center|thumb|600px|Figure 2: Risk Register table (own figure, based on <ref name="Pmi" /> and <ref name="PRINCE"/>) ]]

==How Risk register is used ? ==
In order to have an in-depth understanding of the risk register, it is of utmost importance to analyse the way that it can be used. The tool aims to eliminate the negative impacts of the various threats by identifying, assessing, evaluating, and monitoring them. The following sections provide a guidance on how the four processes of risk register can be implemented.
=== 1. How to identify the risks ===
As a first step, the risks have to be identified by using the right techniques. Once this is complete, a short description of the risks that have been identified through the risk management process is provided.

''' 1.1 Risk identification '''

As it is quoted in ''‘Practice Standard for Project Risk Management’'', ''‘’ A risk cannot be managed unless it is first identified.’’'' <ref name="Pmi" /> (p.25) The identified risks are the first information that will be used in the risk register. <ref name="Pmi" />, <ref name="ot" /> It is worth noting that the risk identification process is continuous because as time passes, the number of information increases. In other words, new risks will become knowable by repeating the risk identification process in different phases of a project. <ref name="Pmi" />

In this article, three methods are used for the risk identification process and all of them are following the ''‘Practice Standard for Project Risk Management’'' <ref name="Pmi" /> (p.28):

*'''''Historical review''''': This technique is used as an analysis of events that happened in the past. When this method, is used it is vital to make sure that the events that are under observation are correlated with risks that happened before in this project or in different projects from the same or different company. This method demands attention as there is the risk to compare data and risks from projects that are not closely connected to the project.
* '''''Current Assessment''''': In this method, the risk identification process is focused on analysing the project’s uncertainty based on the information that is known in this specific period of time.
*''''' Creativity Techniques''''': This approach is based on the creativity of the people who participate in the project. To be more specific, stakeholders have the chance to work individually or with other people in order to identify risks by using creative methods and thinking outside of the box.

All of the techniques mentioned above have both strong points and limitations. This means that if they are used separately, they might lead to inadequate results. Thus, the combination of the three techniques can guarantee more accurate results. <ref name="Pmi" /> (p.28)

''' 1.2 Risk description'''

The description of the identified risks is a very important component of the risk identification process. It is a way to make sure that the risks are well communicated and understood among all the stakeholders. <ref name="ppp"> Guide to Using a Risk Register, Stephanie Ray, https://www.projectmanager.com/blog/guide-using-risk-register Accessed on 19/02/2020 </ref> For instance, in a construction problem, it is identified that a potential risk could be a shock in the economy. A potential explanation is that a shock in the economy could increase the price of raw materials and as a result the project might exceed the agreed budget. As it could be observed, the description of this risk could give a better insight into what this change might impact.

=== 2. How to assess the risks ===
The assessment of the various risks could be applied by using two methods, namely, the qualitative and quantitative risk analysis. Both methods are used to evaluate risks’ importance to the project. This includes an analysis of the probability that each risk has to occur and the impact that they might have on the project. <ref name="Pmi" /> In this article, the assessment of the identified risks is following the ''‘’ Practice Standard for Project Risk Management‘’ '' and the''‘’ PMBOK guide ‘’ ''.

* '''Qualitative risk analysis''' <ref name="Pmi" />,<ref name="ot" />

In qualitative risk analysis, the risks are evaluated and ranked based on their probability, impact, and some other characteristics that have been defined before the implementation of the analysis. This analysis is implemented regularly as new threats might need to be identified. The basic components of qualitative risk analysis are the high or low probability of a risk to happen and the consequences that it might have in ''‘’ one or more project objectives such as schedule, cost, quality, or performance.’’'' <ref name="ot" /> (p.423) Additionally, in qualitative risk analysis the risks can be grouped based on various criteria. For example, they can be grouped by risks that might exceed projects’ deadlines. This way, the project management team could monitor the risks in a more effective way since not only they will know the project areas they need to pay more attention to, but they will also have a quicker response managing the threats of the several categories.

* '''Quantitative risk analysis''' <ref name="Pmi" />,<ref name="ot" />

The quantitative risk analysis is used to calculate risks’ effects on the project. While this numerical analysis is not considered vital for all the projects, it provides more pragmatistic results. The implementation of the quantitative risk analysis follows on from the qualitative risk analysis. This could be explained by the fact that in the qualitative risk analysis the risks are already prioritized and thus the most vital threats are recognized and could be calculated. The impact and the probability are calculated, and the risk register table can be updated with numerical results.

=== 3. How to respond to the risks ===

It is of utmost importance to tackle the identified risks once they have been assessed. In order to do so, it is necessary to perform a risk management plan which will include the actions for dealing with the risks and the person who is responsible to tackle them. As a first step the risks should be known by all the stakeholders. Every potential risk is assigned to the right people. These people are called risk owners and they are responsible with controlling and finding solutions for the risks they are assigned with. The risks could harm the project in various ways and for this reason, there should be a plan with responses for all of them.<ref name="Pmi" /> In the ''‘Practice Standard for Project Risk Management’'' it is written that ''’’ the planning entails agreeing upon the actions to be taken and the potential changes to the budget, schedule, resources, and scope which these actions might cause.’’'' <ref name="Pmi" /> (p.43) Furthermore, the actions that have to be taken for every risk should be developed at the very early stage of its identification. In other words, it is integral to have the strategies and responses in advance so that project’s time schedule will change as little as possible. <ref name="Pmi" /> The risk register includes all the responses and actions on its table. Once new risks are identified risk register is updated with new strategies that the risk owner has to follow. Moreover, throughout the lifecycle of a project, it is possible to make adjustments and corrections to the plans of the previously identified risks. <ref name="ppp" />

=== 4. How to monitor the risks ===

Risk monitoring is the last process that needs to be implemented in order to fill in the risk register table. This final step is as important as the three steps mentioned above. Risk should be monitored throughout the life cycle of a project. It is a continuous process that includes the actions that have to be taken in order to control not only the risks that already have been identified but also the new threats that have to be tamed. <ref name="Pmi" />. <ref name="ot" /> Additionally, risk monitoring is used to certify that all the risk responses are taken place when there is a need for action. This is a way to appraise the effectiveness of the responses and the risk owner in the risk management process. <ref name="Pmi" /> The process starts by checking the risk register table. The table should include the appropriate responses for every risk, otherwise, it has to be updated with the new actions that have to be taken.<ref name="Pmi" /> Moreover, it is important for the new actions and changes to be well communicated to the stakeholders and to the people responsible for that specific risks. <ref name="Pmi" /> The number of information varies at the different stages of a project. More information is available to the project managers as the project continues its processes, which means that changes can be made in the risk register. <ref name="Pmi" /> These changes will be defined during the monitoring process and will be updated and documented in the risk register by providing new information for the actions that have to be changed. <ref name="Pmi" />

In this article, three techniques are analyzed for controlling the risks. These techniques are analyzed in the ''‘PMBOK guide ’'' <ref name="ot" /> (p.456-457) :

* '''Data analysis''': This technique is used to ensure that the reserves of the project are enough to not threaten its budget and the deadlines. <ref name="ot" /> More specifically, this analysis is checking if the reserves that a project has as a backup is enough to ensure that it will have the resources to manage an unexpected event that will make its budget and time exceed the agreed limits. <ref name="Pmi" />

* '''Audits''': This method applied in order to evaluate the performance of the processes included in the risk management and hence they are recorded in the risk register. <ref name="ot" /> It is worth noting that this way of monitoring risks can be conducted during project meetings when the project team examines the risks. <ref name="ot" />

* '''Meetings''': During meetings, the project management team can evaluate the various risks. This is a vital process that examines the overall process of risk management planning. More specifically, the meeting can ensure that all the stakeholders have a clear overview of the risks that need to be tackled. Furthermore, it is possible that some of the identified risks happened in the past, and through the meeting, the project management team can communicate the learning outcomes and mistakes that they should avoid in the future. <ref name="ot" />

After these processes, the risk register framework is updated with the new data in order to assist the project management team with the risk management process.

==Reflections==
While many positive outcomes can arise from the use of the risk register framework, there are also some limitations that are worth mentioning. In this section, the advantages and limitations of the risk register framework are discussed.
=== Advantages ===
The risk register is used to document information about the various risks that have been identified not only at the very early stages but also throughout the whole lifecycle of the project. This is an extremely beneficial characteristic of the tool that can be used for the assessment of a project's performance as well as for the strategic and decision-making processes that are related to risk management. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> More specifically, as the project is developing, the amount of gathered information is growing which means that new risks will be identified to threaten the project's success. The risk register table is storing the information from the risks that already have been identified and evaluated, and once new treats have been found, the table is expanded with the new data. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>, <ref name="Pmi" /> This could be vital for the overall success of the project since the new risk could be well communicated among the stakeholders and thus they will be informed for the new actions they have to take in order to eliminate the negative impact of the threats. Additionally, the table includes information that is the output of the qualitative risk analysis. In other words, in the qualitative analysis, it is examined how possible is for a risk to take place and the impact that it will have on the project. This analysis is used to prioritize the risks based on their importance. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>, <ref name="Pmi" /> Once the risks are ranked, the stakeholders are informed of the threats that they have to pay more attention to. This means that they might have to spend more time planning a strategy around these risks as they will have a higher impact. Finally, the risk register is an advantageous tool for complex projects. When a project is very complex, it's important to use tools that could break down the planning processes. Risk register, due to its structure, provides the needed information for every risk from the moment it is identified. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref>

=== Limitations ===
The identified risks are listed based on the critical way of thinking of the people who are associated with the risk evaluation. This could be a limitation since the results on the risk register table might reflect the personal opinion of the people who implemented it and not the reality.<ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>, <ref name="fd"> Why risk registers don't do enough to help you manage risks, https://www.civilsociety.co.uk/finance/why-risk-registers-don-t-do-enough-to-help-you-manage-risks.html, Accessed on 22/02/2020 </ref> Moreover, the development of the risk register table requires a lot of time in order to insert the data from the four processes. Apart from that since the table is updated when changes are made either to the list of the identified risks or to the actions that have to be taken, it is possible that mistakes might occur when the new data are imported. Hence, the implementation of the documented results of the risk register seeks attention in order to avoid mistakes. However, the risk register is more than important when it comes to analysing the risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> This means that even though it is a time-consuming process, the outcomes of the tool can prevent threats that otherwise could have a negative impact on the project.

It is worth noting, that ignoring the limitations of the risk management tool could have a negative impact on the project. Nevertheless, it is a very important tool that should be applied in the risk management processes most or all of the time.

==Annotated bibliography==
* ''PMI Standard for Risk Management (2019)''
This book is based on the PMBOK Guide– Fourth Edition. It is a book about the risk management processes that a project has to follow. It analyses the techniques for the identification, assessment, response, and controlling of the risks. In this book, the reader can find information for the risk register model and how it is involved in all the previously mentioned processes.

* ''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017)''
This book is focused on how to manage projects based on PRINCE2 principles. It describes how the different activities of a product based on its implementation stage. Risks analysis is also explained in one of the chapters of the book. In this book, the various stages of the risk management process are explained by providing the needing theory and well-explained figures.

* ''Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017)''
The book A guide to the Project Management Body of Knowledge provides detailed information on how to manage projects. The risk register framework is analyzed in the chapters of the book by providing information on the usage of the tool in the various processes of risk management. Moreover, it is explained the characteristics that should be involved in the risk register table. The study of the various techniques that are used in the risk management planning of the article is based on the analysis of this book.

==References==
<references/>

Risk Register analysis

2021-02-28T17:25:23Z

Dorothea Georgiadou: /* Advantages */

Developed by Dorothea Georgiadou

In an age where the economic, social, and political environment is constantly shifting, there is an urgent need to study the risks that may threaten the success of a project. It is particularly important to study the risks that may adversely affect the project and lead to events that might have as a consequence the exceeding of the agreed budget and time. For this reason, the risk management planning should identify and describe in detail the potential risks by providing the needed information for the actions that should be done for eliminating their negative impact. The high uncertainty that exists in projects necessitates the use of a management tool that will control the risks. <ref name="Pmi"> Project Mangement Institute. "Practice standard for project risk management." Project Management Institute, 2009. </ref> In this article the risk management framework ‘’Risk register’’ is explained. The risk register is a tool that covers and studies many aspects of risk management processes. More specifically, the aim of this article is to explain how this tool can be used to document the outcomes of the risk management processes. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013, Retrieved from:https://www.researchgate.net/publication/263528336_Risk_register_developement_and_implementation_for_construction_projects </ref> The article provides a description of the tool along with the reasons that it should be used. It is a framework that aims to record the information from the processes related to the identification, assessment, responding, and monitoring of potential risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. Finally, the article analyzes along with the benefits also the limitations of this risk management tool.

== Why use risk register? ==
In an ever-changing environment, a projects’ success is associated with a high level of uncertainty. In the ‘Practice Standard for Project Risk Management’, risk management is an approach that plays a vital role in the strategic and decision-making processes since adjustments in the project management planning can be done after the identification of the projects’ challenges. The risk register framework is used to support the risk management process in order to eliminate the negative impact that the various threats might have on a project. Threats could come from the external and internal environment of the company. The external risks are associated with the economic, social, political, and technological environment, while the internal threats include risks that are related to human actions and estimations. For example, it is possible for people to make wrong estimations because of inexperience and underestimation of some threats. This high level of uncertainty makes it increasingly necessary to use a model that assists the risk management process in a more effective way. <ref name="Pmi" />, <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>.
=== The role of Risk Register ===
In ''‘Practice Standard for Project Risk Management’'', the risk register is defined as the framework that is used in project risk management for the documentation of the identified risks. <ref name="Pmi" /> It records all the needed information that will be the steppingstone to overcome the risks that might menace projects' success. <ref name="Pmi" /> It is worth noting that based on ''‘PRINCE2’'', the risks are divided into threats and opportunities. Threats are the risks that could have negative consequences for the project, while opportunities could bring positive outcomes to the company. <ref name="PRINCE"> Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017) Retrieved from: https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=4863041</ref> The article is mainly focused on the documentation of the various threats in the risk register. The importance of the tool is highlighted in the fact that it can assist project managers with tackling potential threats and to have a better and clearer overview of the internal and external risks that might negatively affect the success of the project. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref> The aim of the risk register is to record information related to the identification, assessment, evaluation of importance, and managing of the potential risks. <ref name="Pmi" />, <ref name="PRINCE" /> More specifically, the uncertainty that exists in projects makes it necessary to use a model that provides various information for the events that could threaten the projects. <ref name="Pmi" />

In the ''‘PMBOK guide ’ ''it is outlined that the tool risk register can be used in different phases of a project. Firstly, it can be used at a very early stage of a project in order to provide information for the risks that might be a threat. Secondly, as the project continues, new threats are recorded and documented in the risk register. In other words, it is used to update the new risks and inform the risk owners how they should monitor the new threats. Finally, it documents all the risks that have been recorded after the completion of a project. <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>

=== Elements of Risk Register===

As can be seen in figure 1, the implementation of the risk register model follows four processes. Firstly, the risks have to be identified. Secondly, they have to be assessed based on their impact and probability. After risk assessment, it is important to define the actions that must be taken, in order to manage the risks. The final process of the risk register model follows, deals with the ways the risks can be monitored. <ref name="Pmi" />, <ref name="ot" />, <ref name="PRINCE"/> The outcome of the previously mentioned processes is the input for the risk register framework.

[[File:Screenshot 2021-02-25 221935.png‎|center|thumb|310px|Figure 1: Implementation steps of Risk Register (own figure, based on <ref name="Pmi" /> and <ref name="PRINCE"/>) ]]

Risk register has the form of a table where each column represents different characteristics of the potential risks.<ref name="latvia"> Project Risk Register Analysis Based on the Theoretical Analysis of Project Management Notion of Risk, Juris Uzulāns, University of Latvia, 2016 Retrieved from: https://content.sciendo.com/configurable/contentpage/journals$002feb$002f29$002f1$002farticle-p43.xml </ref> In order to start building the risk register the first step is the identification of the risks. Once the potential threats are known it is vital to provide a brief description for each one. <ref name="Pmi" /> This helps the project managers not only to clarify the risks but also to understand why they are threatening the project’s success. Secondly, for the assessment of the risks, their probability and impact on the project are examined. Furthermore, in'' ‘Practice Standard for Project Risk Management’'' it is stated that the evaluation of the risk is depending on their impact and their frequency to happen.<ref name="Pmi" /> For instance, the risks that have high impact and probability to occur, are risks with higher importance than the risks with low frequency and impact. The identification of the risks’ importance is an essential element for project managers to know which risks are needed more attention and time for setting up a plan in order to overcome them. <ref name="Pmi" /> Furthermore, based on the ''‘PMBOK guide’'' the risk register also includes information about the person who must tackle every risk and the actions that he has to take to eliminate its negative consequences. <ref name="ot" /> Finally, the risks should be monitored in order to prevent unexpected events. <ref name="Pmi" /> The above elements are demanding high attention as they are mainly focused on dominant areas of the risk management process which are the identification of the threats, the evaluation of their importance, and the course of action that should be taken.
[[File:Screenshot_2021-02-26_100347.png‎|center|thumb|600px|Figure 2: Risk Register table (own figure, based on <ref name="Pmi" /> and <ref name="PRINCE"/>) ]]

==How Risk register is used ? ==
In order to have an in-depth understanding of the risk register, it is of utmost importance to analyse the way that it can be used. The tool aims to eliminate the negative impacts of the various threats by identifying, assessing, evaluating, and monitoring them. The following sections provide a guidance on how the four processes of risk register can be implemented.
=== 1. How to identify the risks ===
As a first step, the risks have to be identified by using the right techniques. Once this is complete, a short description of the risks that have been identified through the risk management process is provided.

''' 1.1 Risk identification '''

As it is quoted in ''‘Practice Standard for Project Risk Management’'', ''‘’ A risk cannot be managed unless it is first identified.’’'' <ref name="Pmi" /> (p.25) The identified risks are the first information that will be used in the risk register. <ref name="Pmi" />, <ref name="ot" /> It is worth noting that the risk identification process is continuous because as time passes, the number of information increases. In other words, new risks will become knowable by repeating the risk identification process in different phases of a project. <ref name="Pmi" />

In this article, three methods are used for the risk identification process and all of them are following the ''‘Practice Standard for Project Risk Management’'' <ref name="Pmi" /> (p.28):

*'''''Historical review''''': This technique is used as an analysis of events that happened in the past. When this method, is used it is vital to make sure that the events that are under observation are correlated with risks that happened before in this project or in different projects from the same or different company. This method demands attention as there is the risk to compare data and risks from projects that are not closely connected to the project.
* '''''Current Assessment''''': In this method, the risk identification process is focused on analysing the project’s uncertainty based on the information that is known in this specific period of time.
*''''' Creativity Techniques''''': This approach is based on the creativity of the people who participate in the project. To be more specific, stakeholders have the chance to work individually or with other people in order to identify risks by using creative methods and thinking outside of the box.

All of the techniques mentioned above have both strong points and limitations. This means that if they are used separately, they might lead to inadequate results. Thus, the combination of the three techniques can guarantee more accurate results. <ref name="Pmi" /> (p.28)

''' 1.2 Risk description'''

The description of the identified risks is a very important component of the risk identification process. It is a way to make sure that the risks are well communicated and understood among all the stakeholders. <ref name="ppp"> Guide to Using a Risk Register, Stephanie Ray, https://www.projectmanager.com/blog/guide-using-risk-register Accessed on 19/02/2020 </ref> For instance, in a construction problem, it is identified that a potential risk could be a shock in the economy. A potential explanation is that a shock in the economy could increase the price of raw materials and as a result the project might exceed the agreed budget. As it could be observed, the description of this risk could give a better insight into what this change might impact.

=== 2. How to assess the risks ===
The assessment of the various risks could be applied by using two methods, namely, the qualitative and quantitative risk analysis. Both methods are used to evaluate risks’ importance to the project. This includes an analysis of the probability that each risk has to occur and the impact that they might have on the project. <ref name="Pmi" /> In this article, the assessment of the identified risks is following the ''‘’ Practice Standard for Project Risk Management‘’ '' and the''‘’ PMBOK guide ‘’ ''.

* '''Qualitative risk analysis''' <ref name="Pmi" />,<ref name="ot" />

In qualitative risk analysis, the risks are evaluated and ranked based on their probability, impact, and some other characteristics that have been defined before the implementation of the analysis. This analysis is implemented regularly as new threats might need to be identified. The basic components of qualitative risk analysis are the high or low probability of a risk to happen and the consequences that it might have in ''‘’ one or more project objectives such as schedule, cost, quality, or performance.’’'' <ref name="ot" /> (p.423) Additionally, in qualitative risk analysis the risks can be grouped based on various criteria. For example, they can be grouped by risks that might exceed projects’ deadlines. This way, the project management team could monitor the risks in a more effective way since not only they will know the project areas they need to pay more attention to, but they will also have a quicker response managing the threats of the several categories.

* '''Quantitative risk analysis''' <ref name="Pmi" />,<ref name="ot" />

The quantitative risk analysis is used to calculate risks’ effects on the project. While this numerical analysis is not considered vital for all the projects, it provides more pragmatistic results. The implementation of the quantitative risk analysis follows on from the qualitative risk analysis. This could be explained by the fact that in the qualitative risk analysis the risks are already prioritized and thus the most vital threats are recognized and could be calculated. The impact and the probability are calculated, and the risk register table can be updated with numerical results.

=== 3. How to respond to the risks ===

It is of utmost importance to tackle the identified risks once they have been assessed. In order to do so, it is necessary to perform a risk management plan which will include the actions for dealing with the risks and the person who is responsible to tackle them. As a first step the risks should be known by all the stakeholders. Every potential risk is assigned to the right people. These people are called risk owners and they are responsible with controlling and finding solutions for the risks they are assigned with. The risks could harm the project in various ways and for this reason, there should be a plan with responses for all of them.<ref name="Pmi" /> In the ''‘Practice Standard for Project Risk Management’'' it is written that ''’’ the planning entails agreeing upon the actions to be taken and the potential changes to the budget, schedule, resources, and scope which these actions might cause.’’'' <ref name="Pmi" /> (p.43) Furthermore, the actions that have to be taken for every risk should be developed at the very early stage of its identification. In other words, it is integral to have the strategies and responses in advance so that project’s time schedule will change as little as possible. <ref name="Pmi" /> The risk register includes all the responses and actions on its table. Once new risks are identified risk register is updated with new strategies that the risk owner has to follow. Moreover, throughout the lifecycle of a project, it is possible to make adjustments and corrections to the plans of the previously identified risks. <ref name="ppp" />

=== 4. How to monitor the risks ===

Risk monitoring is the last process that needs to be implemented in order to fill in the risk register table. This final step is as important as the three steps mentioned above. Risk should be monitored throughout the life cycle of a project. It is a continuous process that includes the actions that have to be taken in order to control not only the risks that already have been identified but also the new threats that have to be tamed. <ref name="Pmi" />. <ref name="ot" /> Additionally, risk monitoring is used to certify that all the risk responses are taken place when there is a need for action. This is a way to appraise the effectiveness of the responses and the risk owner in the risk management process. <ref name="Pmi" /> The process starts by checking the risk register table. The table should include the appropriate responses for every risk, otherwise, it has to be updated with the new actions that have to be taken.<ref name="Pmi" /> Moreover, it is important for the new actions and changes to be well communicated to the stakeholders and to the people responsible for that specific risks. <ref name="Pmi" /> The number of information varies at the different stages of a project. More information is available to the project managers as the project continues its processes, which means that changes can be made in the risk register. <ref name="Pmi" /> These changes will be defined during the monitoring process and will be updated and documented in the risk register by providing new information for the actions that have to be changed. <ref name="Pmi" />

In this article, three techniques are analyzed for controlling the risks. These techniques are analyzed in the ''‘PMBOK guide ’'' <ref name="ot" /> :

* '''Data analysis''': This technique is used to ensure that the reserves of the project are enough to not threaten its budget and the deadlines. <ref name="ot" /> More specifically, this analysis is checking if the reserves that a project has as a backup is enough to ensure that it will have the resources to manage an unexpected event that will make its budget and time exceed the agreed limits. <ref name="Pmi" />

* '''Audits''': This method applied in order to evaluate the performance of the processes included in the risk management and hence they are recorded in the risk register. <ref name="ot" /> It is worth noting that this way of monitoring risks can be conducted during project meetings when the project team examines the risks. <ref name="ot" />

* '''Meetings''': During meetings, the project management team can evaluate the various risks. This is a vital process that examines the overall process of risk management planning. More specifically, the meeting can ensure that all the stakeholders have a clear overview of the risks that need to be tackled. Furthermore, it is possible that some of the identified risks happened in the past, and through the meeting, the project management team can communicate the learning outcomes and mistakes that they should avoid in the future. <ref name="ot" />

After these processes, the risk register framework is updated with the new data in order to assist the project management team with the risk management process.

==Reflections==
While many positive outcomes can arise from the use of the risk register framework, there are also some limitations that are worth mentioning. In this section, the advantages and limitations of the risk register framework are discussed.
=== Advantages ===
The risk register is used to document information about the various risks that have been identified not only at the very early stages but also throughout the whole lifecycle of the project. This is an extremely beneficial characteristic of the tool that can be used for the assessment of a project's performance as well as for the strategic and decision-making processes that are related to risk management. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> More specifically, as the project is developing, the amount of gathered information is growing which means that new risks will be identified to threaten the project's success. The risk register table is storing the information from the risks that already have been identified and evaluated, and once new treats have been found, the table is expanded with the new data. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>, <ref name="Pmi" /> This could be vital for the overall success of the project since the new risk could be well communicated among the stakeholders and thus they will be informed for the new actions they have to take in order to eliminate the negative impact of the threats. Additionally, the table includes information that is the output of the qualitative risk analysis. In other words, in the qualitative analysis, it is examined how possible is for a risk to take place and the impact that it will have on the project. This analysis is used to prioritize the risks based on their importance. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>, <ref name="Pmi" /> Once the risks are ranked, the stakeholders are informed of the threats that they have to pay more attention to. This means that they might have to spend more time planning a strategy around these risks as they will have a higher impact. Finally, the risk register is an advantageous tool for complex projects. When a project is very complex, it's important to use tools that could break down the planning processes. Risk register, due to its structure, provides the needed information for every risk from the moment it is identified. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref>

=== Limitations ===
The identified risks are listed based on the critical way of thinking of the people who are associated with the risk evaluation. This could be a limitation since the results on the risk register table might reflect the personal opinion of the people who implemented it and not the reality.<ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>, <ref name="fd"> Why risk registers don't do enough to help you manage risks, https://www.civilsociety.co.uk/finance/why-risk-registers-don-t-do-enough-to-help-you-manage-risks.html, Accessed on 22/02/2020 </ref> Moreover, the development of the risk register table requires a lot of time in order to insert the data from the four processes. Apart from that since the table is updated when changes are made either to the list of the identified risks or to the actions that have to be taken, it is possible that mistakes might occur when the new data are imported. Hence, the implementation of the documented results of the risk register seeks attention in order to avoid mistakes. However, the risk register is more than important when it comes to analysing the risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> This means that even though it is a time-consuming process, the outcomes of the tool can prevent threats that otherwise could have a negative impact on the project.

It is worth noting, that ignoring the limitations of the risk management tool could have a negative impact on the project. Nevertheless, it is a very important tool that should be applied in the risk management processes most or all of the time.

==Annotated bibliography==
* ''PMI Standard for Risk Management (2019)''
This book is based on the PMBOK Guide– Fourth Edition. It is a book about the risk management processes that a project has to follow. It analyses the techniques for the identification, assessment, response, and controlling of the risks. In this book, the reader can find information for the risk register model and how it is involved in all the previously mentioned processes.

* ''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017)''
This book is focused on how to manage projects based on PRINCE2 principles. It describes how the different activities of a product based on its implementation stage. Risks analysis is also explained in one of the chapters of the book. In this book, the various stages of the risk management process are explained by providing the needing theory and well-explained figures.

* ''Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017)''
The book A guide to the Project Management Body of Knowledge provides detailed information on how to manage projects. The risk register framework is analyzed in the chapters of the book by providing information on the usage of the tool in the various processes of risk management. Moreover, it is explained the characteristics that should be involved in the risk register table. The study of the various techniques that are used in the risk management planning of the article is based on the analysis of this book.

==References==
<references/>

Risk Register analysis

2021-02-28T17:23:39Z

Dorothea Georgiadou: /* 4. How to monitor the risks. */

Developed by Dorothea Georgiadou

In an age where the economic, social, and political environment is constantly shifting, there is an urgent need to study the risks that may threaten the success of a project. It is particularly important to study the risks that may adversely affect the project and lead to events that might have as a consequence the exceeding of the agreed budget and time. For this reason, the risk management planning should identify and describe in detail the potential risks by providing the needed information for the actions that should be done for eliminating their negative impact. The high uncertainty that exists in projects necessitates the use of a management tool that will control the risks. <ref name="Pmi"> Project Mangement Institute. "Practice standard for project risk management." Project Management Institute, 2009. </ref> In this article the risk management framework ‘’Risk register’’ is explained. The risk register is a tool that covers and studies many aspects of risk management processes. More specifically, the aim of this article is to explain how this tool can be used to document the outcomes of the risk management processes. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013, Retrieved from:https://www.researchgate.net/publication/263528336_Risk_register_developement_and_implementation_for_construction_projects </ref> The article provides a description of the tool along with the reasons that it should be used. It is a framework that aims to record the information from the processes related to the identification, assessment, responding, and monitoring of potential risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. Finally, the article analyzes along with the benefits also the limitations of this risk management tool.

== Why use risk register? ==
In an ever-changing environment, a projects’ success is associated with a high level of uncertainty. In the ‘Practice Standard for Project Risk Management’, risk management is an approach that plays a vital role in the strategic and decision-making processes since adjustments in the project management planning can be done after the identification of the projects’ challenges. The risk register framework is used to support the risk management process in order to eliminate the negative impact that the various threats might have on a project. Threats could come from the external and internal environment of the company. The external risks are associated with the economic, social, political, and technological environment, while the internal threats include risks that are related to human actions and estimations. For example, it is possible for people to make wrong estimations because of inexperience and underestimation of some threats. This high level of uncertainty makes it increasingly necessary to use a model that assists the risk management process in a more effective way. <ref name="Pmi" />, <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>.
=== The role of Risk Register ===
In ''‘Practice Standard for Project Risk Management’'', the risk register is defined as the framework that is used in project risk management for the documentation of the identified risks. <ref name="Pmi" /> It records all the needed information that will be the steppingstone to overcome the risks that might menace projects' success. <ref name="Pmi" /> It is worth noting that based on ''‘PRINCE2’'', the risks are divided into threats and opportunities. Threats are the risks that could have negative consequences for the project, while opportunities could bring positive outcomes to the company. <ref name="PRINCE"> Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017) Retrieved from: https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=4863041</ref> The article is mainly focused on the documentation of the various threats in the risk register. The importance of the tool is highlighted in the fact that it can assist project managers with tackling potential threats and to have a better and clearer overview of the internal and external risks that might negatively affect the success of the project. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref> The aim of the risk register is to record information related to the identification, assessment, evaluation of importance, and managing of the potential risks. <ref name="Pmi" />, <ref name="PRINCE" /> More specifically, the uncertainty that exists in projects makes it necessary to use a model that provides various information for the events that could threaten the projects. <ref name="Pmi" />

In the ''‘PMBOK guide ’ ''it is outlined that the tool risk register can be used in different phases of a project. Firstly, it can be used at a very early stage of a project in order to provide information for the risks that might be a threat. Secondly, as the project continues, new threats are recorded and documented in the risk register. In other words, it is used to update the new risks and inform the risk owners how they should monitor the new threats. Finally, it documents all the risks that have been recorded after the completion of a project. <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>

=== Elements of Risk Register===

As can be seen in figure 1, the implementation of the risk register model follows four processes. Firstly, the risks have to be identified. Secondly, they have to be assessed based on their impact and probability. After risk assessment, it is important to define the actions that must be taken, in order to manage the risks. The final process of the risk register model follows, deals with the ways the risks can be monitored. <ref name="Pmi" />, <ref name="ot" />, <ref name="PRINCE"/> The outcome of the previously mentioned processes is the input for the risk register framework.

[[File:Screenshot 2021-02-25 221935.png‎|center|thumb|310px|Figure 1: Implementation steps of Risk Register (own figure, based on <ref name="Pmi" /> and <ref name="PRINCE"/>) ]]

Risk register has the form of a table where each column represents different characteristics of the potential risks.<ref name="latvia"> Project Risk Register Analysis Based on the Theoretical Analysis of Project Management Notion of Risk, Juris Uzulāns, University of Latvia, 2016 Retrieved from: https://content.sciendo.com/configurable/contentpage/journals$002feb$002f29$002f1$002farticle-p43.xml </ref> In order to start building the risk register the first step is the identification of the risks. Once the potential threats are known it is vital to provide a brief description for each one. <ref name="Pmi" /> This helps the project managers not only to clarify the risks but also to understand why they are threatening the project’s success. Secondly, for the assessment of the risks, their probability and impact on the project are examined. Furthermore, in'' ‘Practice Standard for Project Risk Management’'' it is stated that the evaluation of the risk is depending on their impact and their frequency to happen.<ref name="Pmi" /> For instance, the risks that have high impact and probability to occur, are risks with higher importance than the risks with low frequency and impact. The identification of the risks’ importance is an essential element for project managers to know which risks are needed more attention and time for setting up a plan in order to overcome them. <ref name="Pmi" /> Furthermore, based on the ''‘PMBOK guide’'' the risk register also includes information about the person who must tackle every risk and the actions that he has to take to eliminate its negative consequences. <ref name="ot" /> Finally, the risks should be monitored in order to prevent unexpected events. <ref name="Pmi" /> The above elements are demanding high attention as they are mainly focused on dominant areas of the risk management process which are the identification of the threats, the evaluation of their importance, and the course of action that should be taken.
[[File:Screenshot_2021-02-26_100347.png‎|center|thumb|600px|Figure 2: Risk Register table (own figure, based on <ref name="Pmi" /> and <ref name="PRINCE"/>) ]]

==How Risk register is used ? ==
In order to have an in-depth understanding of the risk register, it is of utmost importance to analyse the way that it can be used. The tool aims to eliminate the negative impacts of the various threats by identifying, assessing, evaluating, and monitoring them. The following sections provide a guidance on how the four processes of risk register can be implemented.
=== 1. How to identify the risks ===
As a first step, the risks have to be identified by using the right techniques. Once this is complete, a short description of the risks that have been identified through the risk management process is provided.

''' 1.1 Risk identification '''

As it is quoted in ''‘Practice Standard for Project Risk Management’'', ''‘’ A risk cannot be managed unless it is first identified.’’'' <ref name="Pmi" /> (p.25) The identified risks are the first information that will be used in the risk register. <ref name="Pmi" />, <ref name="ot" /> It is worth noting that the risk identification process is continuous because as time passes, the number of information increases. In other words, new risks will become knowable by repeating the risk identification process in different phases of a project. <ref name="Pmi" />

In this article, three methods are used for the risk identification process and all of them are following the ''‘Practice Standard for Project Risk Management’'' <ref name="Pmi" /> (p.28):

*'''''Historical review''''': This technique is used as an analysis of events that happened in the past. When this method, is used it is vital to make sure that the events that are under observation are correlated with risks that happened before in this project or in different projects from the same or different company. This method demands attention as there is the risk to compare data and risks from projects that are not closely connected to the project.
* '''''Current Assessment''''': In this method, the risk identification process is focused on analysing the project’s uncertainty based on the information that is known in this specific period of time.
*''''' Creativity Techniques''''': This approach is based on the creativity of the people who participate in the project. To be more specific, stakeholders have the chance to work individually or with other people in order to identify risks by using creative methods and thinking outside of the box.

All of the techniques mentioned above have both strong points and limitations. This means that if they are used separately, they might lead to inadequate results. Thus, the combination of the three techniques can guarantee more accurate results. <ref name="Pmi" /> (p.28)

''' 1.2 Risk description'''

The description of the identified risks is a very important component of the risk identification process. It is a way to make sure that the risks are well communicated and understood among all the stakeholders. <ref name="ppp"> Guide to Using a Risk Register, Stephanie Ray, https://www.projectmanager.com/blog/guide-using-risk-register Accessed on 19/02/2020 </ref> For instance, in a construction problem, it is identified that a potential risk could be a shock in the economy. A potential explanation is that a shock in the economy could increase the price of raw materials and as a result the project might exceed the agreed budget. As it could be observed, the description of this risk could give a better insight into what this change might impact.

=== 2. How to assess the risks ===
The assessment of the various risks could be applied by using two methods, namely, the qualitative and quantitative risk analysis. Both methods are used to evaluate risks’ importance to the project. This includes an analysis of the probability that each risk has to occur and the impact that they might have on the project. <ref name="Pmi" /> In this article, the assessment of the identified risks is following the ''‘’ Practice Standard for Project Risk Management‘’ '' and the''‘’ PMBOK guide ‘’ ''.

* '''Qualitative risk analysis''' <ref name="Pmi" />,<ref name="ot" />

In qualitative risk analysis, the risks are evaluated and ranked based on their probability, impact, and some other characteristics that have been defined before the implementation of the analysis. This analysis is implemented regularly as new threats might need to be identified. The basic components of qualitative risk analysis are the high or low probability of a risk to happen and the consequences that it might have in ''‘’ one or more project objectives such as schedule, cost, quality, or performance.’’'' <ref name="ot" /> (p.423) Additionally, in qualitative risk analysis the risks can be grouped based on various criteria. For example, they can be grouped by risks that might exceed projects’ deadlines. This way, the project management team could monitor the risks in a more effective way since not only they will know the project areas they need to pay more attention to, but they will also have a quicker response managing the threats of the several categories.

* '''Quantitative risk analysis''' <ref name="Pmi" />,<ref name="ot" />

The quantitative risk analysis is used to calculate risks’ effects on the project. While this numerical analysis is not considered vital for all the projects, it provides more pragmatistic results. The implementation of the quantitative risk analysis follows on from the qualitative risk analysis. This could be explained by the fact that in the qualitative risk analysis the risks are already prioritized and thus the most vital threats are recognized and could be calculated. The impact and the probability are calculated, and the risk register table can be updated with numerical results.

=== 3. How to respond to the risks ===

It is of utmost importance to tackle the identified risks once they have been assessed. In order to do so, it is necessary to perform a risk management plan which will include the actions for dealing with the risks and the person who is responsible to tackle them. As a first step the risks should be known by all the stakeholders. Every potential risk is assigned to the right people. These people are called risk owners and they are responsible with controlling and finding solutions for the risks they are assigned with. The risks could harm the project in various ways and for this reason, there should be a plan with responses for all of them.<ref name="Pmi" /> In the ''‘Practice Standard for Project Risk Management’'' it is written that ''’’ the planning entails agreeing upon the actions to be taken and the potential changes to the budget, schedule, resources, and scope which these actions might cause.’’'' <ref name="Pmi" /> (p.43) Furthermore, the actions that have to be taken for every risk should be developed at the very early stage of its identification. In other words, it is integral to have the strategies and responses in advance so that project’s time schedule will change as little as possible. <ref name="Pmi" /> The risk register includes all the responses and actions on its table. Once new risks are identified risk register is updated with new strategies that the risk owner has to follow. Moreover, throughout the lifecycle of a project, it is possible to make adjustments and corrections to the plans of the previously identified risks. <ref name="ppp" />

=== 4. How to monitor the risks ===

Risk monitoring is the last process that needs to be implemented in order to fill in the risk register table. This final step is as important as the three steps mentioned above. Risk should be monitored throughout the life cycle of a project. It is a continuous process that includes the actions that have to be taken in order to control not only the risks that already have been identified but also the new threats that have to be tamed. <ref name="Pmi" />. <ref name="ot" /> Additionally, risk monitoring is used to certify that all the risk responses are taken place when there is a need for action. This is a way to appraise the effectiveness of the responses and the risk owner in the risk management process. <ref name="Pmi" /> The process starts by checking the risk register table. The table should include the appropriate responses for every risk, otherwise, it has to be updated with the new actions that have to be taken.<ref name="Pmi" /> Moreover, it is important for the new actions and changes to be well communicated to the stakeholders and to the people responsible for that specific risks. <ref name="Pmi" /> The number of information varies at the different stages of a project. More information is available to the project managers as the project continues its processes, which means that changes can be made in the risk register. <ref name="Pmi" /> These changes will be defined during the monitoring process and will be updated and documented in the risk register by providing new information for the actions that have to be changed. <ref name="Pmi" />

In this article, three techniques are analyzed for controlling the risks. These techniques are analyzed in the ''‘PMBOK guide ’'' <ref name="ot" /> :

* '''Data analysis''': This technique is used to ensure that the reserves of the project are enough to not threaten its budget and the deadlines. <ref name="ot" /> More specifically, this analysis is checking if the reserves that a project has as a backup is enough to ensure that it will have the resources to manage an unexpected event that will make its budget and time exceed the agreed limits. <ref name="Pmi" />

* '''Audits''': This method applied in order to evaluate the performance of the processes included in the risk management and hence they are recorded in the risk register. <ref name="ot" /> It is worth noting that this way of monitoring risks can be conducted during project meetings when the project team examines the risks. <ref name="ot" />

* '''Meetings''': During meetings, the project management team can evaluate the various risks. This is a vital process that examines the overall process of risk management planning. More specifically, the meeting can ensure that all the stakeholders have a clear overview of the risks that need to be tackled. Furthermore, it is possible that some of the identified risks happened in the past, and through the meeting, the project management team can communicate the learning outcomes and mistakes that they should avoid in the future. <ref name="ot" />

After these processes, the risk register framework is updated with the new data in order to assist the project management team with the risk management process.

==Reflections==
While many positive outcomes can arise from the use of the risk register framework, there are also some limitations that are worth mentioning. In this section, the advantages and limitations of the risk register framework are discussed.
=== Advantages ===
The risk register is used to document information about the various risks that have been identified not only at the very early stages but also throughout the whole lifecycle of the project. This is an extremely beneficial characteristic of the tool that can be used for the assessment of a project's performance as well as for the strategic and decision-making processes that are related to risk management. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> Moreover, another advantage of the tool is that the risk register table is updated regularly with new data. More specifically, as the project is developing, the amount of gathered information is growing which means that new risks will be identified to threaten the project's success. Furthermore, the risk register table is storing the information from the risks that already have been identified and evaluated, and once new treats have been found, the table is expanded with the new data. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>, <ref name="Pmi" /> This could be vital for the overall success of the project since the new risk could be well communicated among the stakeholders and thus they will be informed for the new actions they have to take in order to eliminate the negative impact of the threats. Additionally, the table includes information that is the output of the qualitative risk analysis. In other words, in the qualitative analysis, it is examined how possible is for a risk to take place and the impact that it will have on the project. This analysis is used to prioritize the risks based on their importance. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>, <ref name="Pmi" /> Once the risks are ranked, the stakeholders are informed of the threats that they have to pay more attention to. This means that they might have to spend more time planning a strategy around these risks as they will have a higher impact. Finally, the risk register is an advantageous tool for complex projects. When a project is very complex, it's important to use tools that could break down the planning processes. Risk register, due to its structure, provides the needed information for every risk from the moment it is identified. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref>

=== Limitations ===
The identified risks are listed based on the critical way of thinking of the people who are associated with the risk evaluation. This could be a limitation since the results on the risk register table might reflect the personal opinion of the people who implemented it and not the reality.<ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>, <ref name="fd"> Why risk registers don't do enough to help you manage risks, https://www.civilsociety.co.uk/finance/why-risk-registers-don-t-do-enough-to-help-you-manage-risks.html, Accessed on 22/02/2020 </ref> Moreover, the development of the risk register table requires a lot of time in order to insert the data from the four processes. Apart from that since the table is updated when changes are made either to the list of the identified risks or to the actions that have to be taken, it is possible that mistakes might occur when the new data are imported. Hence, the implementation of the documented results of the risk register seeks attention in order to avoid mistakes. However, the risk register is more than important when it comes to analysing the risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> This means that even though it is a time-consuming process, the outcomes of the tool can prevent threats that otherwise could have a negative impact on the project.

It is worth noting, that ignoring the limitations of the risk management tool could have a negative impact on the project. Nevertheless, it is a very important tool that should be applied in the risk management processes most or all of the time.

==Annotated bibliography==
* ''PMI Standard for Risk Management (2019)''
This book is based on the PMBOK Guide– Fourth Edition. It is a book about the risk management processes that a project has to follow. It analyses the techniques for the identification, assessment, response, and controlling of the risks. In this book, the reader can find information for the risk register model and how it is involved in all the previously mentioned processes.

* ''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017)''
This book is focused on how to manage projects based on PRINCE2 principles. It describes how the different activities of a product based on its implementation stage. Risks analysis is also explained in one of the chapters of the book. In this book, the various stages of the risk management process are explained by providing the needing theory and well-explained figures.

* ''Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017)''
The book A guide to the Project Management Body of Knowledge provides detailed information on how to manage projects. The risk register framework is analyzed in the chapters of the book by providing information on the usage of the tool in the various processes of risk management. Moreover, it is explained the characteristics that should be involved in the risk register table. The study of the various techniques that are used in the risk management planning of the article is based on the analysis of this book.

==References==
<references/>

Risk Register analysis

2021-02-28T17:23:28Z

Dorothea Georgiadou: /* 1. How to identify the risks. */

Developed by Dorothea Georgiadou

In an age where the economic, social, and political environment is constantly shifting, there is an urgent need to study the risks that may threaten the success of a project. It is particularly important to study the risks that may adversely affect the project and lead to events that might have as a consequence the exceeding of the agreed budget and time. For this reason, the risk management planning should identify and describe in detail the potential risks by providing the needed information for the actions that should be done for eliminating their negative impact. The high uncertainty that exists in projects necessitates the use of a management tool that will control the risks. <ref name="Pmi"> Project Mangement Institute. "Practice standard for project risk management." Project Management Institute, 2009. </ref> In this article the risk management framework ‘’Risk register’’ is explained. The risk register is a tool that covers and studies many aspects of risk management processes. More specifically, the aim of this article is to explain how this tool can be used to document the outcomes of the risk management processes. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013, Retrieved from:https://www.researchgate.net/publication/263528336_Risk_register_developement_and_implementation_for_construction_projects </ref> The article provides a description of the tool along with the reasons that it should be used. It is a framework that aims to record the information from the processes related to the identification, assessment, responding, and monitoring of potential risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. Finally, the article analyzes along with the benefits also the limitations of this risk management tool.

== Why use risk register? ==
In an ever-changing environment, a projects’ success is associated with a high level of uncertainty. In the ‘Practice Standard for Project Risk Management’, risk management is an approach that plays a vital role in the strategic and decision-making processes since adjustments in the project management planning can be done after the identification of the projects’ challenges. The risk register framework is used to support the risk management process in order to eliminate the negative impact that the various threats might have on a project. Threats could come from the external and internal environment of the company. The external risks are associated with the economic, social, political, and technological environment, while the internal threats include risks that are related to human actions and estimations. For example, it is possible for people to make wrong estimations because of inexperience and underestimation of some threats. This high level of uncertainty makes it increasingly necessary to use a model that assists the risk management process in a more effective way. <ref name="Pmi" />, <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>.
=== The role of Risk Register ===
In ''‘Practice Standard for Project Risk Management’'', the risk register is defined as the framework that is used in project risk management for the documentation of the identified risks. <ref name="Pmi" /> It records all the needed information that will be the steppingstone to overcome the risks that might menace projects' success. <ref name="Pmi" /> It is worth noting that based on ''‘PRINCE2’'', the risks are divided into threats and opportunities. Threats are the risks that could have negative consequences for the project, while opportunities could bring positive outcomes to the company. <ref name="PRINCE"> Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017) Retrieved from: https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=4863041</ref> The article is mainly focused on the documentation of the various threats in the risk register. The importance of the tool is highlighted in the fact that it can assist project managers with tackling potential threats and to have a better and clearer overview of the internal and external risks that might negatively affect the success of the project. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref> The aim of the risk register is to record information related to the identification, assessment, evaluation of importance, and managing of the potential risks. <ref name="Pmi" />, <ref name="PRINCE" /> More specifically, the uncertainty that exists in projects makes it necessary to use a model that provides various information for the events that could threaten the projects. <ref name="Pmi" />

In the ''‘PMBOK guide ’ ''it is outlined that the tool risk register can be used in different phases of a project. Firstly, it can be used at a very early stage of a project in order to provide information for the risks that might be a threat. Secondly, as the project continues, new threats are recorded and documented in the risk register. In other words, it is used to update the new risks and inform the risk owners how they should monitor the new threats. Finally, it documents all the risks that have been recorded after the completion of a project. <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>

=== Elements of Risk Register===

As can be seen in figure 1, the implementation of the risk register model follows four processes. Firstly, the risks have to be identified. Secondly, they have to be assessed based on their impact and probability. After risk assessment, it is important to define the actions that must be taken, in order to manage the risks. The final process of the risk register model follows, deals with the ways the risks can be monitored. <ref name="Pmi" />, <ref name="ot" />, <ref name="PRINCE"/> The outcome of the previously mentioned processes is the input for the risk register framework.

[[File:Screenshot 2021-02-25 221935.png‎|center|thumb|310px|Figure 1: Implementation steps of Risk Register (own figure, based on <ref name="Pmi" /> and <ref name="PRINCE"/>) ]]

Risk register has the form of a table where each column represents different characteristics of the potential risks.<ref name="latvia"> Project Risk Register Analysis Based on the Theoretical Analysis of Project Management Notion of Risk, Juris Uzulāns, University of Latvia, 2016 Retrieved from: https://content.sciendo.com/configurable/contentpage/journals$002feb$002f29$002f1$002farticle-p43.xml </ref> In order to start building the risk register the first step is the identification of the risks. Once the potential threats are known it is vital to provide a brief description for each one. <ref name="Pmi" /> This helps the project managers not only to clarify the risks but also to understand why they are threatening the project’s success. Secondly, for the assessment of the risks, their probability and impact on the project are examined. Furthermore, in'' ‘Practice Standard for Project Risk Management’'' it is stated that the evaluation of the risk is depending on their impact and their frequency to happen.<ref name="Pmi" /> For instance, the risks that have high impact and probability to occur, are risks with higher importance than the risks with low frequency and impact. The identification of the risks’ importance is an essential element for project managers to know which risks are needed more attention and time for setting up a plan in order to overcome them. <ref name="Pmi" /> Furthermore, based on the ''‘PMBOK guide’'' the risk register also includes information about the person who must tackle every risk and the actions that he has to take to eliminate its negative consequences. <ref name="ot" /> Finally, the risks should be monitored in order to prevent unexpected events. <ref name="Pmi" /> The above elements are demanding high attention as they are mainly focused on dominant areas of the risk management process which are the identification of the threats, the evaluation of their importance, and the course of action that should be taken.
[[File:Screenshot_2021-02-26_100347.png‎|center|thumb|600px|Figure 2: Risk Register table (own figure, based on <ref name="Pmi" /> and <ref name="PRINCE"/>) ]]

==How Risk register is used ? ==
In order to have an in-depth understanding of the risk register, it is of utmost importance to analyse the way that it can be used. The tool aims to eliminate the negative impacts of the various threats by identifying, assessing, evaluating, and monitoring them. The following sections provide a guidance on how the four processes of risk register can be implemented.
=== 1. How to identify the risks ===
As a first step, the risks have to be identified by using the right techniques. Once this is complete, a short description of the risks that have been identified through the risk management process is provided.

''' 1.1 Risk identification '''

As it is quoted in ''‘Practice Standard for Project Risk Management’'', ''‘’ A risk cannot be managed unless it is first identified.’’'' <ref name="Pmi" /> (p.25) The identified risks are the first information that will be used in the risk register. <ref name="Pmi" />, <ref name="ot" /> It is worth noting that the risk identification process is continuous because as time passes, the number of information increases. In other words, new risks will become knowable by repeating the risk identification process in different phases of a project. <ref name="Pmi" />

In this article, three methods are used for the risk identification process and all of them are following the ''‘Practice Standard for Project Risk Management’'' <ref name="Pmi" /> (p.28):

*'''''Historical review''''': This technique is used as an analysis of events that happened in the past. When this method, is used it is vital to make sure that the events that are under observation are correlated with risks that happened before in this project or in different projects from the same or different company. This method demands attention as there is the risk to compare data and risks from projects that are not closely connected to the project.
* '''''Current Assessment''''': In this method, the risk identification process is focused on analysing the project’s uncertainty based on the information that is known in this specific period of time.
*''''' Creativity Techniques''''': This approach is based on the creativity of the people who participate in the project. To be more specific, stakeholders have the chance to work individually or with other people in order to identify risks by using creative methods and thinking outside of the box.

All of the techniques mentioned above have both strong points and limitations. This means that if they are used separately, they might lead to inadequate results. Thus, the combination of the three techniques can guarantee more accurate results. <ref name="Pmi" /> (p.28)

''' 1.2 Risk description'''

The description of the identified risks is a very important component of the risk identification process. It is a way to make sure that the risks are well communicated and understood among all the stakeholders. <ref name="ppp"> Guide to Using a Risk Register, Stephanie Ray, https://www.projectmanager.com/blog/guide-using-risk-register Accessed on 19/02/2020 </ref> For instance, in a construction problem, it is identified that a potential risk could be a shock in the economy. A potential explanation is that a shock in the economy could increase the price of raw materials and as a result the project might exceed the agreed budget. As it could be observed, the description of this risk could give a better insight into what this change might impact.

=== 2. How to assess the risks ===
The assessment of the various risks could be applied by using two methods, namely, the qualitative and quantitative risk analysis. Both methods are used to evaluate risks’ importance to the project. This includes an analysis of the probability that each risk has to occur and the impact that they might have on the project. <ref name="Pmi" /> In this article, the assessment of the identified risks is following the ''‘’ Practice Standard for Project Risk Management‘’ '' and the''‘’ PMBOK guide ‘’ ''.

* '''Qualitative risk analysis''' <ref name="Pmi" />,<ref name="ot" />

In qualitative risk analysis, the risks are evaluated and ranked based on their probability, impact, and some other characteristics that have been defined before the implementation of the analysis. This analysis is implemented regularly as new threats might need to be identified. The basic components of qualitative risk analysis are the high or low probability of a risk to happen and the consequences that it might have in ''‘’ one or more project objectives such as schedule, cost, quality, or performance.’’'' <ref name="ot" /> (p.423) Additionally, in qualitative risk analysis the risks can be grouped based on various criteria. For example, they can be grouped by risks that might exceed projects’ deadlines. This way, the project management team could monitor the risks in a more effective way since not only they will know the project areas they need to pay more attention to, but they will also have a quicker response managing the threats of the several categories.

* '''Quantitative risk analysis''' <ref name="Pmi" />,<ref name="ot" />

The quantitative risk analysis is used to calculate risks’ effects on the project. While this numerical analysis is not considered vital for all the projects, it provides more pragmatistic results. The implementation of the quantitative risk analysis follows on from the qualitative risk analysis. This could be explained by the fact that in the qualitative risk analysis the risks are already prioritized and thus the most vital threats are recognized and could be calculated. The impact and the probability are calculated, and the risk register table can be updated with numerical results.

=== 3. How to respond to the risks ===

It is of utmost importance to tackle the identified risks once they have been assessed. In order to do so, it is necessary to perform a risk management plan which will include the actions for dealing with the risks and the person who is responsible to tackle them. As a first step the risks should be known by all the stakeholders. Every potential risk is assigned to the right people. These people are called risk owners and they are responsible with controlling and finding solutions for the risks they are assigned with. The risks could harm the project in various ways and for this reason, there should be a plan with responses for all of them.<ref name="Pmi" /> In the ''‘Practice Standard for Project Risk Management’'' it is written that ''’’ the planning entails agreeing upon the actions to be taken and the potential changes to the budget, schedule, resources, and scope which these actions might cause.’’'' <ref name="Pmi" /> (p.43) Furthermore, the actions that have to be taken for every risk should be developed at the very early stage of its identification. In other words, it is integral to have the strategies and responses in advance so that project’s time schedule will change as little as possible. <ref name="Pmi" /> The risk register includes all the responses and actions on its table. Once new risks are identified risk register is updated with new strategies that the risk owner has to follow. Moreover, throughout the lifecycle of a project, it is possible to make adjustments and corrections to the plans of the previously identified risks. <ref name="ppp" />

=== 4. How to monitor the risks. ===

Risk monitoring is the last process that needs to be implemented in order to fill in the risk register table. This final step is as important as the three steps mentioned above. Risk should be monitored throughout the life cycle of a project. It is a continuous process that includes the actions that have to be taken in order to control not only the risks that already have been identified but also the new threats that have to be tamed. <ref name="Pmi" />. <ref name="ot" /> Additionally, risk monitoring is used to certify that all the risk responses are taken place when there is a need for action. This is a way to appraise the effectiveness of the responses and the risk owner in the risk management process. <ref name="Pmi" /> The process starts by checking the risk register table. The table should include the appropriate responses for every risk, otherwise, it has to be updated with the new actions that have to be taken.<ref name="Pmi" /> Moreover, it is important for the new actions and changes to be well communicated to the stakeholders and to the people responsible for that specific risks. <ref name="Pmi" /> The number of information varies at the different stages of a project. More information is available to the project managers as the project continues its processes, which means that changes can be made in the risk register. <ref name="Pmi" /> These changes will be defined during the monitoring process and will be updated and documented in the risk register by providing new information for the actions that have to be changed. <ref name="Pmi" />

In this article, three techniques are analyzed for controlling the risks. These techniques are analyzed in the ''‘PMBOK guide ’'' <ref name="ot" /> :

* '''Data analysis''': This technique is used to ensure that the reserves of the project are enough to not threaten its budget and the deadlines. <ref name="ot" /> More specifically, this analysis is checking if the reserves that a project has as a backup is enough to ensure that it will have the resources to manage an unexpected event that will make its budget and time exceed the agreed limits. <ref name="Pmi" />

* '''Audits''': This method applied in order to evaluate the performance of the processes included in the risk management and hence they are recorded in the risk register. <ref name="ot" /> It is worth noting that this way of monitoring risks can be conducted during project meetings when the project team examines the risks. <ref name="ot" />

* '''Meetings''': During meetings, the project management team can evaluate the various risks. This is a vital process that examines the overall process of risk management planning. More specifically, the meeting can ensure that all the stakeholders have a clear overview of the risks that need to be tackled. Furthermore, it is possible that some of the identified risks happened in the past, and through the meeting, the project management team can communicate the learning outcomes and mistakes that they should avoid in the future. <ref name="ot" />

After these processes, the risk register framework is updated with the new data in order to assist the project management team with the risk management process.

==Reflections==
While many positive outcomes can arise from the use of the risk register framework, there are also some limitations that are worth mentioning. In this section, the advantages and limitations of the risk register framework are discussed.
=== Advantages ===
The risk register is used to document information about the various risks that have been identified not only at the very early stages but also throughout the whole lifecycle of the project. This is an extremely beneficial characteristic of the tool that can be used for the assessment of a project's performance as well as for the strategic and decision-making processes that are related to risk management. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> Moreover, another advantage of the tool is that the risk register table is updated regularly with new data. More specifically, as the project is developing, the amount of gathered information is growing which means that new risks will be identified to threaten the project's success. Furthermore, the risk register table is storing the information from the risks that already have been identified and evaluated, and once new treats have been found, the table is expanded with the new data. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>, <ref name="Pmi" /> This could be vital for the overall success of the project since the new risk could be well communicated among the stakeholders and thus they will be informed for the new actions they have to take in order to eliminate the negative impact of the threats. Additionally, the table includes information that is the output of the qualitative risk analysis. In other words, in the qualitative analysis, it is examined how possible is for a risk to take place and the impact that it will have on the project. This analysis is used to prioritize the risks based on their importance. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>, <ref name="Pmi" /> Once the risks are ranked, the stakeholders are informed of the threats that they have to pay more attention to. This means that they might have to spend more time planning a strategy around these risks as they will have a higher impact. Finally, the risk register is an advantageous tool for complex projects. When a project is very complex, it's important to use tools that could break down the planning processes. Risk register, due to its structure, provides the needed information for every risk from the moment it is identified. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref>

=== Limitations ===
The identified risks are listed based on the critical way of thinking of the people who are associated with the risk evaluation. This could be a limitation since the results on the risk register table might reflect the personal opinion of the people who implemented it and not the reality.<ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>, <ref name="fd"> Why risk registers don't do enough to help you manage risks, https://www.civilsociety.co.uk/finance/why-risk-registers-don-t-do-enough-to-help-you-manage-risks.html, Accessed on 22/02/2020 </ref> Moreover, the development of the risk register table requires a lot of time in order to insert the data from the four processes. Apart from that since the table is updated when changes are made either to the list of the identified risks or to the actions that have to be taken, it is possible that mistakes might occur when the new data are imported. Hence, the implementation of the documented results of the risk register seeks attention in order to avoid mistakes. However, the risk register is more than important when it comes to analysing the risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> This means that even though it is a time-consuming process, the outcomes of the tool can prevent threats that otherwise could have a negative impact on the project.

It is worth noting, that ignoring the limitations of the risk management tool could have a negative impact on the project. Nevertheless, it is a very important tool that should be applied in the risk management processes most or all of the time.

==Annotated bibliography==
* ''PMI Standard for Risk Management (2019)''
This book is based on the PMBOK Guide– Fourth Edition. It is a book about the risk management processes that a project has to follow. It analyses the techniques for the identification, assessment, response, and controlling of the risks. In this book, the reader can find information for the risk register model and how it is involved in all the previously mentioned processes.

* ''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017)''
This book is focused on how to manage projects based on PRINCE2 principles. It describes how the different activities of a product based on its implementation stage. Risks analysis is also explained in one of the chapters of the book. In this book, the various stages of the risk management process are explained by providing the needing theory and well-explained figures.

* ''Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017)''
The book A guide to the Project Management Body of Knowledge provides detailed information on how to manage projects. The risk register framework is analyzed in the chapters of the book by providing information on the usage of the tool in the various processes of risk management. Moreover, it is explained the characteristics that should be involved in the risk register table. The study of the various techniques that are used in the risk management planning of the article is based on the analysis of this book.

==References==
<references/>

Risk Register analysis

2021-02-28T17:22:35Z

Dorothea Georgiadou: /* 3. How to respond to the risks */

Developed by Dorothea Georgiadou

In an age where the economic, social, and political environment is constantly shifting, there is an urgent need to study the risks that may threaten the success of a project. It is particularly important to study the risks that may adversely affect the project and lead to events that might have as a consequence the exceeding of the agreed budget and time. For this reason, the risk management planning should identify and describe in detail the potential risks by providing the needed information for the actions that should be done for eliminating their negative impact. The high uncertainty that exists in projects necessitates the use of a management tool that will control the risks. <ref name="Pmi"> Project Mangement Institute. "Practice standard for project risk management." Project Management Institute, 2009. </ref> In this article the risk management framework ‘’Risk register’’ is explained. The risk register is a tool that covers and studies many aspects of risk management processes. More specifically, the aim of this article is to explain how this tool can be used to document the outcomes of the risk management processes. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013, Retrieved from:https://www.researchgate.net/publication/263528336_Risk_register_developement_and_implementation_for_construction_projects </ref> The article provides a description of the tool along with the reasons that it should be used. It is a framework that aims to record the information from the processes related to the identification, assessment, responding, and monitoring of potential risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. Finally, the article analyzes along with the benefits also the limitations of this risk management tool.

== Why use risk register? ==
In an ever-changing environment, a projects’ success is associated with a high level of uncertainty. In the ‘Practice Standard for Project Risk Management’, risk management is an approach that plays a vital role in the strategic and decision-making processes since adjustments in the project management planning can be done after the identification of the projects’ challenges. The risk register framework is used to support the risk management process in order to eliminate the negative impact that the various threats might have on a project. Threats could come from the external and internal environment of the company. The external risks are associated with the economic, social, political, and technological environment, while the internal threats include risks that are related to human actions and estimations. For example, it is possible for people to make wrong estimations because of inexperience and underestimation of some threats. This high level of uncertainty makes it increasingly necessary to use a model that assists the risk management process in a more effective way. <ref name="Pmi" />, <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>.
=== The role of Risk Register ===
In ''‘Practice Standard for Project Risk Management’'', the risk register is defined as the framework that is used in project risk management for the documentation of the identified risks. <ref name="Pmi" /> It records all the needed information that will be the steppingstone to overcome the risks that might menace projects' success. <ref name="Pmi" /> It is worth noting that based on ''‘PRINCE2’'', the risks are divided into threats and opportunities. Threats are the risks that could have negative consequences for the project, while opportunities could bring positive outcomes to the company. <ref name="PRINCE"> Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017) Retrieved from: https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=4863041</ref> The article is mainly focused on the documentation of the various threats in the risk register. The importance of the tool is highlighted in the fact that it can assist project managers with tackling potential threats and to have a better and clearer overview of the internal and external risks that might negatively affect the success of the project. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref> The aim of the risk register is to record information related to the identification, assessment, evaluation of importance, and managing of the potential risks. <ref name="Pmi" />, <ref name="PRINCE" /> More specifically, the uncertainty that exists in projects makes it necessary to use a model that provides various information for the events that could threaten the projects. <ref name="Pmi" />

In the ''‘PMBOK guide ’ ''it is outlined that the tool risk register can be used in different phases of a project. Firstly, it can be used at a very early stage of a project in order to provide information for the risks that might be a threat. Secondly, as the project continues, new threats are recorded and documented in the risk register. In other words, it is used to update the new risks and inform the risk owners how they should monitor the new threats. Finally, it documents all the risks that have been recorded after the completion of a project. <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>

=== Elements of Risk Register===

As can be seen in figure 1, the implementation of the risk register model follows four processes. Firstly, the risks have to be identified. Secondly, they have to be assessed based on their impact and probability. After risk assessment, it is important to define the actions that must be taken, in order to manage the risks. The final process of the risk register model follows, deals with the ways the risks can be monitored. <ref name="Pmi" />, <ref name="ot" />, <ref name="PRINCE"/> The outcome of the previously mentioned processes is the input for the risk register framework.

[[File:Screenshot 2021-02-25 221935.png‎|center|thumb|310px|Figure 1: Implementation steps of Risk Register (own figure, based on <ref name="Pmi" /> and <ref name="PRINCE"/>) ]]

Risk register has the form of a table where each column represents different characteristics of the potential risks.<ref name="latvia"> Project Risk Register Analysis Based on the Theoretical Analysis of Project Management Notion of Risk, Juris Uzulāns, University of Latvia, 2016 Retrieved from: https://content.sciendo.com/configurable/contentpage/journals$002feb$002f29$002f1$002farticle-p43.xml </ref> In order to start building the risk register the first step is the identification of the risks. Once the potential threats are known it is vital to provide a brief description for each one. <ref name="Pmi" /> This helps the project managers not only to clarify the risks but also to understand why they are threatening the project’s success. Secondly, for the assessment of the risks, their probability and impact on the project are examined. Furthermore, in'' ‘Practice Standard for Project Risk Management’'' it is stated that the evaluation of the risk is depending on their impact and their frequency to happen.<ref name="Pmi" /> For instance, the risks that have high impact and probability to occur, are risks with higher importance than the risks with low frequency and impact. The identification of the risks’ importance is an essential element for project managers to know which risks are needed more attention and time for setting up a plan in order to overcome them. <ref name="Pmi" /> Furthermore, based on the ''‘PMBOK guide’'' the risk register also includes information about the person who must tackle every risk and the actions that he has to take to eliminate its negative consequences. <ref name="ot" /> Finally, the risks should be monitored in order to prevent unexpected events. <ref name="Pmi" /> The above elements are demanding high attention as they are mainly focused on dominant areas of the risk management process which are the identification of the threats, the evaluation of their importance, and the course of action that should be taken.
[[File:Screenshot_2021-02-26_100347.png‎|center|thumb|600px|Figure 2: Risk Register table (own figure, based on <ref name="Pmi" /> and <ref name="PRINCE"/>) ]]

==How Risk register is used ? ==
In order to have an in-depth understanding of the risk register, it is of utmost importance to analyse the way that it can be used. The tool aims to eliminate the negative impacts of the various threats by identifying, assessing, evaluating, and monitoring them. The following sections provide a guidance on how the four processes of risk register can be implemented.
=== 1. How to identify the risks. ===
As a first step, the risks have to be identified by using the right techniques. Once this is complete, a short description of the risks that have been identified through the risk management process is provided.

''' 1.1 Risk identification '''

As it is quoted in ''‘Practice Standard for Project Risk Management’'', ''‘’ A risk cannot be managed unless it is first identified.’’'' <ref name="Pmi" /> (p.25) The identified risks are the first information that will be used in the risk register. <ref name="Pmi" />, <ref name="ot" /> It is worth noting that the risk identification process is continuous because as time passes, the number of information increases. In other words, new risks will become knowable by repeating the risk identification process in different phases of a project. <ref name="Pmi" />

In this article, three methods are used for the risk identification process and all of them are following the ''‘Practice Standard for Project Risk Management’'' <ref name="Pmi" /> (p.28):

*'''''Historical review''''': This technique is used as an analysis of events that happened in the past. When this method, is used it is vital to make sure that the events that are under observation are correlated with risks that happened before in this project or in different projects from the same or different company. This method demands attention as there is the risk to compare data and risks from projects that are not closely connected to the project.
* '''''Current Assessment''''': In this method, the risk identification process is focused on analysing the project’s uncertainty based on the information that is known in this specific period of time.
*''''' Creativity Techniques''''': This approach is based on the creativity of the people who participate in the project. To be more specific, stakeholders have the chance to work individually or with other people in order to identify risks by using creative methods and thinking outside of the box.

All of the techniques mentioned above have both strong points and limitations. This means that if they are used separately, they might lead to inadequate results. Thus, the combination of the three techniques can guarantee more accurate results. <ref name="Pmi" /> (p.28)

''' 1.2 Risk description'''

The description of the identified risks is a very important component of the risk identification process. It is a way to make sure that the risks are well communicated and understood among all the stakeholders. <ref name="ppp"> Guide to Using a Risk Register, Stephanie Ray, https://www.projectmanager.com/blog/guide-using-risk-register Accessed on 19/02/2020 </ref> For instance, in a construction problem, it is identified that a potential risk could be a shock in the economy. A potential explanation is that a shock in the economy could increase the price of raw materials and as a result the project might exceed the agreed budget. As it could be observed, the description of this risk could give a better insight into what this change might impact.

=== 2. How to assess the risks ===
The assessment of the various risks could be applied by using two methods, namely, the qualitative and quantitative risk analysis. Both methods are used to evaluate risks’ importance to the project. This includes an analysis of the probability that each risk has to occur and the impact that they might have on the project. <ref name="Pmi" /> In this article, the assessment of the identified risks is following the ''‘’ Practice Standard for Project Risk Management‘’ '' and the''‘’ PMBOK guide ‘’ ''.

* '''Qualitative risk analysis''' <ref name="Pmi" />,<ref name="ot" />

In qualitative risk analysis, the risks are evaluated and ranked based on their probability, impact, and some other characteristics that have been defined before the implementation of the analysis. This analysis is implemented regularly as new threats might need to be identified. The basic components of qualitative risk analysis are the high or low probability of a risk to happen and the consequences that it might have in ''‘’ one or more project objectives such as schedule, cost, quality, or performance.’’'' <ref name="ot" /> (p.423) Additionally, in qualitative risk analysis the risks can be grouped based on various criteria. For example, they can be grouped by risks that might exceed projects’ deadlines. This way, the project management team could monitor the risks in a more effective way since not only they will know the project areas they need to pay more attention to, but they will also have a quicker response managing the threats of the several categories.

* '''Quantitative risk analysis''' <ref name="Pmi" />,<ref name="ot" />

The quantitative risk analysis is used to calculate risks’ effects on the project. While this numerical analysis is not considered vital for all the projects, it provides more pragmatistic results. The implementation of the quantitative risk analysis follows on from the qualitative risk analysis. This could be explained by the fact that in the qualitative risk analysis the risks are already prioritized and thus the most vital threats are recognized and could be calculated. The impact and the probability are calculated, and the risk register table can be updated with numerical results.

=== 3. How to respond to the risks ===

It is of utmost importance to tackle the identified risks once they have been assessed. In order to do so, it is necessary to perform a risk management plan which will include the actions for dealing with the risks and the person who is responsible to tackle them. As a first step the risks should be known by all the stakeholders. Every potential risk is assigned to the right people. These people are called risk owners and they are responsible with controlling and finding solutions for the risks they are assigned with. The risks could harm the project in various ways and for this reason, there should be a plan with responses for all of them.<ref name="Pmi" /> In the ''‘Practice Standard for Project Risk Management’'' it is written that ''’’ the planning entails agreeing upon the actions to be taken and the potential changes to the budget, schedule, resources, and scope which these actions might cause.’’'' <ref name="Pmi" /> (p.43) Furthermore, the actions that have to be taken for every risk should be developed at the very early stage of its identification. In other words, it is integral to have the strategies and responses in advance so that project’s time schedule will change as little as possible. <ref name="Pmi" /> The risk register includes all the responses and actions on its table. Once new risks are identified risk register is updated with new strategies that the risk owner has to follow. Moreover, throughout the lifecycle of a project, it is possible to make adjustments and corrections to the plans of the previously identified risks. <ref name="ppp" />

=== 4. How to monitor the risks. ===

Risk monitoring is the last process that needs to be implemented in order to fill in the risk register table. This final step is as important as the three steps mentioned above. Risk should be monitored throughout the life cycle of a project. It is a continuous process that includes the actions that have to be taken in order to control not only the risks that already have been identified but also the new threats that have to be tamed. <ref name="Pmi" />. <ref name="ot" /> Additionally, risk monitoring is used to certify that all the risk responses are taken place when there is a need for action. This is a way to appraise the effectiveness of the responses and the risk owner in the risk management process. <ref name="Pmi" /> The process starts by checking the risk register table. The table should include the appropriate responses for every risk, otherwise, it has to be updated with the new actions that have to be taken.<ref name="Pmi" /> Moreover, it is important for the new actions and changes to be well communicated to the stakeholders and to the people responsible for that specific risks. <ref name="Pmi" /> The number of information varies at the different stages of a project. More information is available to the project managers as the project continues its processes, which means that changes can be made in the risk register. <ref name="Pmi" /> These changes will be defined during the monitoring process and will be updated and documented in the risk register by providing new information for the actions that have to be changed. <ref name="Pmi" />

In this article, three techniques are analyzed for controlling the risks. These techniques are analyzed in the ''‘PMBOK guide ’'' <ref name="ot" /> :

* '''Data analysis''': This technique is used to ensure that the reserves of the project are enough to not threaten its budget and the deadlines. <ref name="ot" /> More specifically, this analysis is checking if the reserves that a project has as a backup is enough to ensure that it will have the resources to manage an unexpected event that will make its budget and time exceed the agreed limits. <ref name="Pmi" />

* '''Audits''': This method applied in order to evaluate the performance of the processes included in the risk management and hence they are recorded in the risk register. <ref name="ot" /> It is worth noting that this way of monitoring risks can be conducted during project meetings when the project team examines the risks. <ref name="ot" />

* '''Meetings''': During meetings, the project management team can evaluate the various risks. This is a vital process that examines the overall process of risk management planning. More specifically, the meeting can ensure that all the stakeholders have a clear overview of the risks that need to be tackled. Furthermore, it is possible that some of the identified risks happened in the past, and through the meeting, the project management team can communicate the learning outcomes and mistakes that they should avoid in the future. <ref name="ot" />

After these processes, the risk register framework is updated with the new data in order to assist the project management team with the risk management process.

==Reflections==
While many positive outcomes can arise from the use of the risk register framework, there are also some limitations that are worth mentioning. In this section, the advantages and limitations of the risk register framework are discussed.
=== Advantages ===
The risk register is used to document information about the various risks that have been identified not only at the very early stages but also throughout the whole lifecycle of the project. This is an extremely beneficial characteristic of the tool that can be used for the assessment of a project's performance as well as for the strategic and decision-making processes that are related to risk management. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> Moreover, another advantage of the tool is that the risk register table is updated regularly with new data. More specifically, as the project is developing, the amount of gathered information is growing which means that new risks will be identified to threaten the project's success. Furthermore, the risk register table is storing the information from the risks that already have been identified and evaluated, and once new treats have been found, the table is expanded with the new data. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>, <ref name="Pmi" /> This could be vital for the overall success of the project since the new risk could be well communicated among the stakeholders and thus they will be informed for the new actions they have to take in order to eliminate the negative impact of the threats. Additionally, the table includes information that is the output of the qualitative risk analysis. In other words, in the qualitative analysis, it is examined how possible is for a risk to take place and the impact that it will have on the project. This analysis is used to prioritize the risks based on their importance. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>, <ref name="Pmi" /> Once the risks are ranked, the stakeholders are informed of the threats that they have to pay more attention to. This means that they might have to spend more time planning a strategy around these risks as they will have a higher impact. Finally, the risk register is an advantageous tool for complex projects. When a project is very complex, it's important to use tools that could break down the planning processes. Risk register, due to its structure, provides the needed information for every risk from the moment it is identified. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref>

=== Limitations ===
The identified risks are listed based on the critical way of thinking of the people who are associated with the risk evaluation. This could be a limitation since the results on the risk register table might reflect the personal opinion of the people who implemented it and not the reality.<ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>, <ref name="fd"> Why risk registers don't do enough to help you manage risks, https://www.civilsociety.co.uk/finance/why-risk-registers-don-t-do-enough-to-help-you-manage-risks.html, Accessed on 22/02/2020 </ref> Moreover, the development of the risk register table requires a lot of time in order to insert the data from the four processes. Apart from that since the table is updated when changes are made either to the list of the identified risks or to the actions that have to be taken, it is possible that mistakes might occur when the new data are imported. Hence, the implementation of the documented results of the risk register seeks attention in order to avoid mistakes. However, the risk register is more than important when it comes to analysing the risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> This means that even though it is a time-consuming process, the outcomes of the tool can prevent threats that otherwise could have a negative impact on the project.

It is worth noting, that ignoring the limitations of the risk management tool could have a negative impact on the project. Nevertheless, it is a very important tool that should be applied in the risk management processes most or all of the time.

==Annotated bibliography==
* ''PMI Standard for Risk Management (2019)''
This book is based on the PMBOK Guide– Fourth Edition. It is a book about the risk management processes that a project has to follow. It analyses the techniques for the identification, assessment, response, and controlling of the risks. In this book, the reader can find information for the risk register model and how it is involved in all the previously mentioned processes.

* ''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017)''
This book is focused on how to manage projects based on PRINCE2 principles. It describes how the different activities of a product based on its implementation stage. Risks analysis is also explained in one of the chapters of the book. In this book, the various stages of the risk management process are explained by providing the needing theory and well-explained figures.

* ''Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017)''
The book A guide to the Project Management Body of Knowledge provides detailed information on how to manage projects. The risk register framework is analyzed in the chapters of the book by providing information on the usage of the tool in the various processes of risk management. Moreover, it is explained the characteristics that should be involved in the risk register table. The study of the various techniques that are used in the risk management planning of the article is based on the analysis of this book.

==References==
<references/>

Risk Register analysis

2021-02-28T17:21:54Z

Dorothea Georgiadou: /* Elements of Risk Register */

Developed by Dorothea Georgiadou

In an age where the economic, social, and political environment is constantly shifting, there is an urgent need to study the risks that may threaten the success of a project. It is particularly important to study the risks that may adversely affect the project and lead to events that might have as a consequence the exceeding of the agreed budget and time. For this reason, the risk management planning should identify and describe in detail the potential risks by providing the needed information for the actions that should be done for eliminating their negative impact. The high uncertainty that exists in projects necessitates the use of a management tool that will control the risks. <ref name="Pmi"> Project Mangement Institute. "Practice standard for project risk management." Project Management Institute, 2009. </ref> In this article the risk management framework ‘’Risk register’’ is explained. The risk register is a tool that covers and studies many aspects of risk management processes. More specifically, the aim of this article is to explain how this tool can be used to document the outcomes of the risk management processes. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013, Retrieved from:https://www.researchgate.net/publication/263528336_Risk_register_developement_and_implementation_for_construction_projects </ref> The article provides a description of the tool along with the reasons that it should be used. It is a framework that aims to record the information from the processes related to the identification, assessment, responding, and monitoring of potential risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>. Finally, the article analyzes along with the benefits also the limitations of this risk management tool.

== Why use risk register? ==
In an ever-changing environment, a projects’ success is associated with a high level of uncertainty. In the ‘Practice Standard for Project Risk Management’, risk management is an approach that plays a vital role in the strategic and decision-making processes since adjustments in the project management planning can be done after the identification of the projects’ challenges. The risk register framework is used to support the risk management process in order to eliminate the negative impact that the various threats might have on a project. Threats could come from the external and internal environment of the company. The external risks are associated with the economic, social, political, and technological environment, while the internal threats include risks that are related to human actions and estimations. For example, it is possible for people to make wrong estimations because of inexperience and underestimation of some threats. This high level of uncertainty makes it increasingly necessary to use a model that assists the risk management process in a more effective way. <ref name="Pmi" />, <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>.
=== The role of Risk Register ===
In ''‘Practice Standard for Project Risk Management’'', the risk register is defined as the framework that is used in project risk management for the documentation of the identified risks. <ref name="Pmi" /> It records all the needed information that will be the steppingstone to overcome the risks that might menace projects' success. <ref name="Pmi" /> It is worth noting that based on ''‘PRINCE2’'', the risks are divided into threats and opportunities. Threats are the risks that could have negative consequences for the project, while opportunities could bring positive outcomes to the company. <ref name="PRINCE"> Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017) Retrieved from: https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=4863041</ref> The article is mainly focused on the documentation of the various threats in the risk register. The importance of the tool is highlighted in the fact that it can assist project managers with tackling potential threats and to have a better and clearer overview of the internal and external risks that might negatively affect the success of the project. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref> The aim of the risk register is to record information related to the identification, assessment, evaluation of importance, and managing of the potential risks. <ref name="Pmi" />, <ref name="PRINCE" /> More specifically, the uncertainty that exists in projects makes it necessary to use a model that provides various information for the events that could threaten the projects. <ref name="Pmi" />

In the ''‘PMBOK guide ’ ''it is outlined that the tool risk register can be used in different phases of a project. Firstly, it can be used at a very early stage of a project in order to provide information for the risks that might be a threat. Secondly, as the project continues, new threats are recorded and documented in the risk register. In other words, it is used to update the new risks and inform the risk owners how they should monitor the new threats. Finally, it documents all the risks that have been recorded after the completion of a project. <ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>

=== Elements of Risk Register===

As can be seen in figure 1, the implementation of the risk register model follows four processes. Firstly, the risks have to be identified. Secondly, they have to be assessed based on their impact and probability. After risk assessment, it is important to define the actions that must be taken, in order to manage the risks. The final process of the risk register model follows, deals with the ways the risks can be monitored. <ref name="Pmi" />, <ref name="ot" />, <ref name="PRINCE"/> The outcome of the previously mentioned processes is the input for the risk register framework.

[[File:Screenshot 2021-02-25 221935.png‎|center|thumb|310px|Figure 1: Implementation steps of Risk Register (own figure, based on <ref name="Pmi" /> and <ref name="PRINCE"/>) ]]

Risk register has the form of a table where each column represents different characteristics of the potential risks.<ref name="latvia"> Project Risk Register Analysis Based on the Theoretical Analysis of Project Management Notion of Risk, Juris Uzulāns, University of Latvia, 2016 Retrieved from: https://content.sciendo.com/configurable/contentpage/journals$002feb$002f29$002f1$002farticle-p43.xml </ref> In order to start building the risk register the first step is the identification of the risks. Once the potential threats are known it is vital to provide a brief description for each one. <ref name="Pmi" /> This helps the project managers not only to clarify the risks but also to understand why they are threatening the project’s success. Secondly, for the assessment of the risks, their probability and impact on the project are examined. Furthermore, in'' ‘Practice Standard for Project Risk Management’'' it is stated that the evaluation of the risk is depending on their impact and their frequency to happen.<ref name="Pmi" /> For instance, the risks that have high impact and probability to occur, are risks with higher importance than the risks with low frequency and impact. The identification of the risks’ importance is an essential element for project managers to know which risks are needed more attention and time for setting up a plan in order to overcome them. <ref name="Pmi" /> Furthermore, based on the ''‘PMBOK guide’'' the risk register also includes information about the person who must tackle every risk and the actions that he has to take to eliminate its negative consequences. <ref name="ot" /> Finally, the risks should be monitored in order to prevent unexpected events. <ref name="Pmi" /> The above elements are demanding high attention as they are mainly focused on dominant areas of the risk management process which are the identification of the threats, the evaluation of their importance, and the course of action that should be taken.
[[File:Screenshot_2021-02-26_100347.png‎|center|thumb|600px|Figure 2: Risk Register table (own figure, based on <ref name="Pmi" /> and <ref name="PRINCE"/>) ]]

==How Risk register is used ? ==
In order to have an in-depth understanding of the risk register, it is of utmost importance to analyse the way that it can be used. The tool aims to eliminate the negative impacts of the various threats by identifying, assessing, evaluating, and monitoring them. The following sections provide a guidance on how the four processes of risk register can be implemented.
=== 1. How to identify the risks. ===
As a first step, the risks have to be identified by using the right techniques. Once this is complete, a short description of the risks that have been identified through the risk management process is provided.

''' 1.1 Risk identification '''

As it is quoted in ''‘Practice Standard for Project Risk Management’'', ''‘’ A risk cannot be managed unless it is first identified.’’'' <ref name="Pmi" /> (p.25) The identified risks are the first information that will be used in the risk register. <ref name="Pmi" />, <ref name="ot" /> It is worth noting that the risk identification process is continuous because as time passes, the number of information increases. In other words, new risks will become knowable by repeating the risk identification process in different phases of a project. <ref name="Pmi" />

In this article, three methods are used for the risk identification process and all of them are following the ''‘Practice Standard for Project Risk Management’'' <ref name="Pmi" /> (p.28):

*'''''Historical review''''': This technique is used as an analysis of events that happened in the past. When this method, is used it is vital to make sure that the events that are under observation are correlated with risks that happened before in this project or in different projects from the same or different company. This method demands attention as there is the risk to compare data and risks from projects that are not closely connected to the project.
* '''''Current Assessment''''': In this method, the risk identification process is focused on analysing the project’s uncertainty based on the information that is known in this specific period of time.
*''''' Creativity Techniques''''': This approach is based on the creativity of the people who participate in the project. To be more specific, stakeholders have the chance to work individually or with other people in order to identify risks by using creative methods and thinking outside of the box.

All of the techniques mentioned above have both strong points and limitations. This means that if they are used separately, they might lead to inadequate results. Thus, the combination of the three techniques can guarantee more accurate results. <ref name="Pmi" /> (p.28)

''' 1.2 Risk description'''

The description of the identified risks is a very important component of the risk identification process. It is a way to make sure that the risks are well communicated and understood among all the stakeholders. <ref name="ppp"> Guide to Using a Risk Register, Stephanie Ray, https://www.projectmanager.com/blog/guide-using-risk-register Accessed on 19/02/2020 </ref> For instance, in a construction problem, it is identified that a potential risk could be a shock in the economy. A potential explanation is that a shock in the economy could increase the price of raw materials and as a result the project might exceed the agreed budget. As it could be observed, the description of this risk could give a better insight into what this change might impact.

=== 2. How to assess the risks ===
The assessment of the various risks could be applied by using two methods, namely, the qualitative and quantitative risk analysis. Both methods are used to evaluate risks’ importance to the project. This includes an analysis of the probability that each risk has to occur and the impact that they might have on the project. <ref name="Pmi" /> In this article, the assessment of the identified risks is following the ''‘’ Practice Standard for Project Risk Management‘’ '' and the''‘’ PMBOK guide ‘’ ''.

* '''Qualitative risk analysis''' <ref name="Pmi" />,<ref name="ot" />

In qualitative risk analysis, the risks are evaluated and ranked based on their probability, impact, and some other characteristics that have been defined before the implementation of the analysis. This analysis is implemented regularly as new threats might need to be identified. The basic components of qualitative risk analysis are the high or low probability of a risk to happen and the consequences that it might have in ''‘’ one or more project objectives such as schedule, cost, quality, or performance.’’'' <ref name="ot" /> (p.423) Additionally, in qualitative risk analysis the risks can be grouped based on various criteria. For example, they can be grouped by risks that might exceed projects’ deadlines. This way, the project management team could monitor the risks in a more effective way since not only they will know the project areas they need to pay more attention to, but they will also have a quicker response managing the threats of the several categories.

* '''Quantitative risk analysis''' <ref name="Pmi" />,<ref name="ot" />

The quantitative risk analysis is used to calculate risks’ effects on the project. While this numerical analysis is not considered vital for all the projects, it provides more pragmatistic results. The implementation of the quantitative risk analysis follows on from the qualitative risk analysis. This could be explained by the fact that in the qualitative risk analysis the risks are already prioritized and thus the most vital threats are recognized and could be calculated. The impact and the probability are calculated, and the risk register table can be updated with numerical results.

=== 3. How to respond to the risks ===

It is of utmost importance to tackle the identified risks once they have been assessed. In order to do so, it is necessary to perform a risk management plan which will include the actions for dealing with the risks and the person who is responsible to tackle them. As a first step the risks should be communicated and understood by all the stakeholders. Every potential risk is assigned to the right people. These people are called risk owners and they are responsible with controlling and finding solutions for the risks they are assigned with. The risks could harm the project in various ways and for this reason, there should be a plan with responses for all of them.<ref name="Pmi" /> In the ''‘Practice Standard for Project Risk Management’'' it is written that ''’’ the planning entails agreeing upon the actions to be taken and the potential changes to the budget, schedule, resources, and scope which these actions might cause.’’'' <ref name="Pmi" /> (p.43) Furthermore, the actions that have to be taken for every risk should be developed at the very early stage of its identification. In other words, it is integral to have the strategies and responses in advance so that project’s time schedule will change as little as possible. <ref name="Pmi" /> The risk register includes all the responses and actions on its table. Once new risks are identified risk register is updated with new strategies that the risk owner has to follow. Moreover, throughout the lifecycle of a project, it is possible to make adjustments and corrections to the plans of the previously identified risks. <ref name="ppp" />

=== 4. How to monitor the risks. ===

Risk monitoring is the last process that needs to be implemented in order to fill in the risk register table. This final step is as important as the three steps mentioned above. Risk should be monitored throughout the life cycle of a project. It is a continuous process that includes the actions that have to be taken in order to control not only the risks that already have been identified but also the new threats that have to be tamed. <ref name="Pmi" />. <ref name="ot" /> Additionally, risk monitoring is used to certify that all the risk responses are taken place when there is a need for action. This is a way to appraise the effectiveness of the responses and the risk owner in the risk management process. <ref name="Pmi" /> The process starts by checking the risk register table. The table should include the appropriate responses for every risk, otherwise, it has to be updated with the new actions that have to be taken.<ref name="Pmi" /> Moreover, it is important for the new actions and changes to be well communicated to the stakeholders and to the people responsible for that specific risks. <ref name="Pmi" /> The number of information varies at the different stages of a project. More information is available to the project managers as the project continues its processes, which means that changes can be made in the risk register. <ref name="Pmi" /> These changes will be defined during the monitoring process and will be updated and documented in the risk register by providing new information for the actions that have to be changed. <ref name="Pmi" />

In this article, three techniques are analyzed for controlling the risks. These techniques are analyzed in the ''‘PMBOK guide ’'' <ref name="ot" /> :

* '''Data analysis''': This technique is used to ensure that the reserves of the project are enough to not threaten its budget and the deadlines. <ref name="ot" /> More specifically, this analysis is checking if the reserves that a project has as a backup is enough to ensure that it will have the resources to manage an unexpected event that will make its budget and time exceed the agreed limits. <ref name="Pmi" />

* '''Audits''': This method applied in order to evaluate the performance of the processes included in the risk management and hence they are recorded in the risk register. <ref name="ot" /> It is worth noting that this way of monitoring risks can be conducted during project meetings when the project team examines the risks. <ref name="ot" />

* '''Meetings''': During meetings, the project management team can evaluate the various risks. This is a vital process that examines the overall process of risk management planning. More specifically, the meeting can ensure that all the stakeholders have a clear overview of the risks that need to be tackled. Furthermore, it is possible that some of the identified risks happened in the past, and through the meeting, the project management team can communicate the learning outcomes and mistakes that they should avoid in the future. <ref name="ot" />

After these processes, the risk register framework is updated with the new data in order to assist the project management team with the risk management process.

==Reflections==
While many positive outcomes can arise from the use of the risk register framework, there are also some limitations that are worth mentioning. In this section, the advantages and limitations of the risk register framework are discussed.
=== Advantages ===
The risk register is used to document information about the various risks that have been identified not only at the very early stages but also throughout the whole lifecycle of the project. This is an extremely beneficial characteristic of the tool that can be used for the assessment of a project's performance as well as for the strategic and decision-making processes that are related to risk management. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> Moreover, another advantage of the tool is that the risk register table is updated regularly with new data. More specifically, as the project is developing, the amount of gathered information is growing which means that new risks will be identified to threaten the project's success. Furthermore, the risk register table is storing the information from the risks that already have been identified and evaluated, and once new treats have been found, the table is expanded with the new data. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>, <ref name="Pmi" /> This could be vital for the overall success of the project since the new risk could be well communicated among the stakeholders and thus they will be informed for the new actions they have to take in order to eliminate the negative impact of the threats. Additionally, the table includes information that is the output of the qualitative risk analysis. In other words, in the qualitative analysis, it is examined how possible is for a risk to take place and the impact that it will have on the project. This analysis is used to prioritize the risks based on their importance. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref>, <ref name="Pmi" /> Once the risks are ranked, the stakeholders are informed of the threats that they have to pay more attention to. This means that they might have to spend more time planning a strategy around these risks as they will have a higher impact. Finally, the risk register is an advantageous tool for complex projects. When a project is very complex, it's important to use tools that could break down the planning processes. Risk register, due to its structure, provides the needed information for every risk from the moment it is identified. <ref name="oo"> What Is a Risk Register in Project Management? Retrieved from: https://www.wrike.com/blog/what-is-a-risk-register-project-management/, Accessed on 20/02/2021 </ref>

=== Limitations ===
The identified risks are listed based on the critical way of thinking of the people who are associated with the risk evaluation. This could be a limitation since the results on the risk register table might reflect the personal opinion of the people who implemented it and not the reality.<ref name="ot"> Project Management Institute, Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017), Retrieved from:https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc/root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation </ref>, <ref name="fd"> Why risk registers don't do enough to help you manage risks, https://www.civilsociety.co.uk/finance/why-risk-registers-don-t-do-enough-to-help-you-manage-risks.html, Accessed on 22/02/2020 </ref> Moreover, the development of the risk register table requires a lot of time in order to insert the data from the four processes. Apart from that since the table is updated when changes are made either to the list of the identified risks or to the actions that have to be taken, it is possible that mistakes might occur when the new data are imported. Hence, the implementation of the documented results of the risk register seeks attention in order to avoid mistakes. However, the risk register is more than important when it comes to analysing the risks. <ref name="sag"> Risk register developement and implementation for construction projects, Ivana Burcar Dunović, Mladen Radujković, Mladen Vukomanović, 2013 </ref> This means that even though it is a time-consuming process, the outcomes of the tool can prevent threats that otherwise could have a negative impact on the project.

It is worth noting, that ignoring the limitations of the risk management tool could have a negative impact on the project. Nevertheless, it is a very important tool that should be applied in the risk management processes most or all of the time.

==Annotated bibliography==
* ''PMI Standard for Risk Management (2019)''
This book is based on the PMBOK Guide– Fourth Edition. It is a book about the risk management processes that a project has to follow. It analyses the techniques for the identification, assessment, response, and controlling of the risks. In this book, the reader can find information for the risk register model and how it is involved in all the previously mentioned processes.

* ''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition (2017)''
This book is focused on how to manage projects based on PRINCE2 principles. It describes how the different activities of a product based on its implementation stage. Risks analysis is also explained in one of the chapters of the book. In this book, the various stages of the risk management process are explained by providing the needing theory and well-explained figures.

* ''Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017)''
The book A guide to the Project Management Body of Knowledge provides detailed information on how to manage projects. The risk register framework is analyzed in the chapters of the book by providing information on the usage of the tool in the various processes of risk management. Moreover, it is explained the characteristics that should be involved in the risk register table. The study of the various techniques that are used in the risk management planning of the article is based on the analysis of this book.

==References==
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