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Risk Management Guide

Everything you need to know about creating, categorizing, and managing risks throughout their lifecycle in Risk Companion.

Getting to the Risk Register

To add or manage risks, navigate to your project's Risk Register:

Projects[Select Your Project]RisksAdd Risk

Adding a Risk

Click Add Risk to open the risk creation form. Enter a title to create the risk, then fill in additional details on the risk detail page.

Tip:During risk identification workshops, quickly add risks by title to capture everything, then flesh out details later by editing each risk.

Risk Detail Page

After creating a risk, open its detail page to complete all information. The page is organized into tabs:

Details Tab

Title*

Required. Enter a clear, descriptive name (e.g., "Supplier delays construction materials").

Category

Select from a dropdown that includes subcategories (e.g., Technical > Design Flaws).

Owner

Select from a dropdown showing team members. The owner is responsible for monitoring and mitigating this risk.

Control Type & Allocation

Choose your risk response strategy (Tolerate, Treat, Terminate, Transfer) and who bears responsibility (Contractor, Client, Shared).

Key Dates

Set Next Review date, plus optional Start and End dates for the risk window.

Bowtie Tab

The Bowtie view visualizes the relationship between causes, the risk event, and its effects:

Add Events

Click to add cause events (left side) and effect events (right side) of your risk.

Attach Measures

Attach preventive measures to causes and mitigating measures to effects to show your control strategy.

Assessment Tab

Score your risk using Current and Target assessments to track improvement over time:

Assessment Method

Select your scoring approach from the dropdown (e.g., 5x5 matrix, custom scales).

Probability

Rate how likely the risk is to occur.

Impact Perspectives

Score impact across multiple dimensions (e.g., Cost, Schedule, Safety, Reputation) as configured for your project.

Note:Changes are saved automatically as you edit. Use the tabs to navigate between different aspects of your risk.

Risk Properties Reference

Here is a complete reference of all fields available when creating or editing a risk:

Title *

Required. A concise, descriptive name (e.g., "Supplier delays construction materials"). This is the only required field for Quick Add.

Category & Subcategory

Two-level classification. Select a main category, then optionally choose a subcategory for more precise grouping.

Occurrence Phase

The project phase when this risk is most likely to materialize (e.g., Planning, Execution, Closeout).

Owner

Select from team members (shown with avatars). The owner receives notifications and is accountable for this risk.

Control Type

Your response strategy: Tolerate, Treat, Terminate, or Transfer. Selected via radio buttons.

Allocation

Who bears responsibility for this risk: Contractor, Client, or Shared between parties.

Key Dates

Next Review (when to reassess), Start Date (when risk window begins), End Date (when risk window closes).

Tags

Free-form labels for filtering and organizing risks (e.g., "critical-path", "vendor", "safety").

Risk Categories

Categorizing risks helps you organize, analyze, and report on your risk portfolio. Risk Companion supports customizable categories, but here are common classifications:

Technical

Technology failures, system integration issues, design flaws

Financial

Budget overruns, currency fluctuations, funding gaps

External

Regulatory changes, market shifts, natural events

Operational

Process inefficiencies, resource constraints, quality issues

Contractual

Vendor disputes, scope changes, compliance breaches

Schedule

Timeline delays, dependencies, milestone slippage

Note:Project administrators can create custom categories tailored to your industry or project type in the Settings area.

Risk Status Workflow

Every risk follows a defined lifecycle from identification to closure. Understanding the status workflow helps you track progress and manage risks effectively.

Status Lifecycle

Draft
Active
In Progress
On Hold
(optional)
Closed

Draft

Initial state for newly identified risks. Use this status while gathering information and before formal review.

Active

The risk has been reviewed and accepted into the register. It requires ongoing monitoring and potential action.

In Progress

Mitigation actions are currently being implemented. Track progress and update assessments as work proceeds.

On Hold

Temporarily paused due to dependencies, resource constraints, or pending decisions. Document the reason for holding.

Closed

The risk is no longer active. When closing, specify a substatus: Mitigated (risk was successfully addressed) or Occurred (risk materialized).

Control Types

Risk Companion supports the four standard risk response strategies. Choose the appropriate control type based on the risk's nature and your organization's risk appetite:

Treat

Take action to reduce the probability or impact of the risk.

Use when: The risk can be reasonably mitigated through preventive or corrective actions.

Transfer

Shift the risk to a third party through insurance, contracts, or outsourcing.

Use when: Another party can better manage the risk or absorb its impact.

Tolerate

Accept the risk without taking specific action, often with contingency plans.

Use when: The cost of mitigation outweighs the potential impact, or the risk is low.

Terminate

Eliminate the risk by removing the activity or objective that creates it.

Use when: The risk is too severe and no acceptable mitigation exists.

Risk Allocation

In addition to control type, specify who bears responsibility for the risk:

ContractorClientShared

Risk Ownership

Assigning clear ownership is critical for effective risk management. Risk owners are accountable for monitoring their assigned risks and driving mitigation actions.

Owner Responsibilities

  • Monitor risk status and update assessments regularly
  • Implement or coordinate mitigation actions
  • Escalate risks that require management attention
  • Document changes and lessons learned
  • Close risks when resolved or no longer relevant
Best Practice:Assign owners who have the authority and resources to act on risks. Avoid assigning ownership to team members who cannot influence outcomes.

Ready to Score Your Risks?

Learn how to assess risk probability and impact using Risk Companion's scoring system.

Go to Risk Assessments Guide