A risk register is a foundational tool for effective risk management. It allows businesses to systematically identify, assess, and manage risks that could impact their operations, people, environment, or finances. It’s not just a best practice—it’s an expectation. Regulatory bodies, industry standards, and customers increasingly require businesses to maintain a current risk register, particularly for managing critical or fatal risks.
Whether you’re starting from scratch or refining an existing risk register, this guide will walk you through the process step-by-step, ensuring your register is comprehensive, actionable, and tailored to your organisation.
Selecting a Template
The first step is choosing the right format for your risk register. This could be:
A function in your existing safety management software, or
A simple, customisable spreadsheet that includes essential fields for risk descriptions, controls, actions, and owners.
Select a format that aligns with your team’s capabilities and makes it easy to update and share.
Engage the Right Stakeholders, Define Context and Scope
Stakeholder Involvement: Include representatives from operations, safety, compliance, finance, and senior management to ensure a comprehensive perspective.
Define Context: Clarify what the risk register will cover. Will it address the entire organisation, specific departments, or particular processes?
Incorporate Business Continuity: Ensure you involve stakeholders responsible for initial response and business continuity planning, not just prevention.
Starting the Risk Identification Process
Consequences First: Identifying consequences or impacts first can make it easier to begin. What are the potential outcomes of incidents? These might include injuries, financial losses, or reputational damage.
Once the consequences are identified, group them into hazard categories and define scenarios (situations where the hazard becomes uncontrolled).
Define Hazard Scenarios
Scenarios should consider:
People: Who could be affected and how?
Plant and Equipment: What assets are involved?
Processes and Activities: Are there specific workflows or tasks linked to the risk?
Incident and Hazard History: Have similar events occurred in the past?
Compliance Scenarios: Ensure you include mandatory risks required by legislation or industry standards.
Identify Causes
For each scenario, identify the causes that could lead to the hazard becoming a risk. Causes are the events or conditions that change the likelihood or consequence of the scenario.
For example, causes might include equipment failure, human error, or environmental conditions.
Assign a Risk Owner
Every risk needs an owner who is responsible for managing it. The owner will ensure controls are in place, actions are implemented, and the risk is regularly reviewed.
Identify Controls
Existing Controls: Document the controls currently in place to manage the risk. These could be engineering controls, administrative procedures, or training programs.
Proposed Controls: Identify opportunities for improvement by proposing new or enhanced controls. These controls must effectively address all of the identified causes for the scenario to ensure risk is mitigated at its source.
Rate the Risks
Use a risk matrix to evaluate the:
Inherent Risk: The level of risk if no controls were in place.
Residual Risk: The level of risk with existing and proposed controls implemented effectively.
This process ensures the risk register prioritises high-risk scenarios.
Assign Control Owners
Each control should have an owner who is responsible for implementing, monitoring, and maintaining its effectiveness.
Assign Actions, Owners, and Due Dates
For new or enhanced controls, document the actions required, assign them to action owners, and set clear deadlines for completion.
Add Initial Response and Business Continuity Plans
Include a column for Initial Response and Business Continuity Activities:
Initial response steps should specifically address the identified consequences to minimise the risk of escalation.
Business continuity actions should focus on bringing the situation under control and restoring operations to Business as Usual.
Consult Workers on the Draft Risk Register
Before finalising the risk register, consult workers and other frontline staff. Their insights can improve the practicality and effectiveness of the register.
Set a Review Schedule
Schedule regular reviews of the risk register:
Annually for stable environments.
More frequently for dynamic workplaces or after significant business changes.
Challenge Residual Risk Scores
Always question whether residual risks can be further reduced. Look for opportunities to implement additional controls or improve existing ones.
Use Historical Data
Review historical data, such as incident reports and audit findings, to identify trends and gaps in your risk register.
Stay Up to Date with Legislation and Industry Standards
Keep track of changes to legislation, industry standards, or guidance to ensure your risk register remains relevant and compliant.
Third-Party Reviews and Audits
Have your risk register reviewed or audited by external specialists. Third-party input can provide a broader perspective and highlight blind spots.
Conclusion
Building an effective risk register is an essential step in managing your organisation's risks and ensuring compliance with industry standards. By following these steps, you’ll create a robust, actionable document that not only identifies risks but also outlines clear responsibilities, controls, and response strategies.
Need help developing your organisation’s risk register? We offer customised solutions tailored to your industry and specific needs. Let us simplify the process and ensure your business is protected.
Risk Register Templates (pre-populated and blank)
Facilitation of Risk Workshops
Audit and Review of Risk Registers
Staff Training in Risk Management, Risk Assessment and Development of Risk Registers
Risk and Control Owner Training and Development
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