Many situations in life have risks; businesses have risks. There are many activities which a business engages in that have risks, such as a business deal with a new client or the adoption of a new computer system.
Risks are part of life and part of the business world. Smart businesses can minimize risks in their operations by taking appropriate measures. You can adopt a risk log that records the types of risk which your organization may encounter so that you can learn from that risk and avoid a repeat and its consequence, or you can track the types of risk which your business is subject to so that you can improve your profitability and productivity.
A risk log template can record:
* Type of risk
* Description of risk
* Date of Occurrence
* Impact & Probability
* Counter Measures
* Management Response
* Submission date
* Status of risk
Every part of an organization has risk, such as environmental, financial, operational, organizational, political, strategic and regulatory. Usually the heads of departments are responsible to identify and manage the possible risks in their department. Larger organizations may have a risk department separately to assist its various departments to identify and handle risks.
All projects are subject to risks; hence, the department(s) involved will need to undergo some risk training to prepare the staff to handle any related risks.
If a risk is not carefully identified and handled, it can cripple a company.
Consider the attached sample template for your convenience.