Risk Management documentation is what helps companies understand what risks can potentially disrupt or benefit business operations. These living documents are instrumental in identifying, assessing, mitigating, monitoring, and reporting threats. With effective documents in place, businesses can take a proactive approach on how to address and respond to unexpected incidents when they occur.
Here are some key documents that should be a part of your risk management process to help prepare for unforeseen events that may impact your business.
Valuable Risk Management Documentations
Risk Register – An inventory of identified risks in an organization, with detailed steps and explanations on how to mitigate them. Also referred to as a risk log, this document helps businesses record and monitor the probability of each risk as well as indicates who is responsible for managing them. Furthermore, a risk register is used to determine if a risk is unmanageable, the cost to alleviate risks, provide useful data for auditors, and more. A risk register must be updated frequently to stay current about emerging risks, so companies can adjust accordingly.
Risk Management Plan – This is a document that outlines how a business will identify, analyze, and respond to risks that may be a threat to business operations. This risk management documentation will ensure staff across all departments are prepared to communicate and react appropriately in the event of unforeseen circumstances, so they can effectively minimize any impact that may occur.
Contingency Plan & Mitigation Plans – The goal of both documents is to outline policies, processes, and procedures for unexpected events; however, each is implemented at different times. For a mitigation plan, a business should enforce this before a risk takes place. This plan will help you detect any potential risks and determine the appropriate action to take, so you can control and minimize any damage. Whereas a contingency plan is enforced only when a specific event occurs and what steps to take after the fact.
Risk Reports – Documents that communicate the progress or status of your risk management plan. A risk report should address the most pressing risks and how well they are being managed. Furthermore, the report should include details on any emerging risks, information on inadequate policies and procedures, and data that will be crucial to future decision-making.
Risk Response Strategies – A course of action on how to handle each risk. Also known as risk treatment, this document will detail different types of strategies ranging from avoidance, transference, mitigation, or acceptance. Each strategy involves a different approach on how to deal with any potential risk. Furthermore, risk response planning may include details on the duties and responsibilities of staff, resources needed to mitigate risks, the time frame on when to implement the process, and the regular review of each strategy.
Risk Assessment Matrix – A diagram that evaluates the likelihood and impact of potential risks. This tool can help businesses visualize certain risks and prioritize them into categories of probability and severity, making it easier and faster for businesses to calculate risks.
With effective risk management documentation in place, businesses can identify and prepare against risks that threaten business continuity and respond appropriately to unexpected incidents that lie in the future.
How can EDC help?
At EDC we can create effective risk mitigations plans or strategies you need to minimize any potential risk. If you need assistance with existing risk management plans, training workplace risk assessment documents, contingency or mitigation plans, risk response strategies, and more EDC has professional technical writers with over 20 years of experience to help you document risks successfully so you can manage risk effectively.
Whether you need a team of consultants to produce a complete line of documentation or a single technical writer for a brief project, Essential Data’s Engagement Manager will lead the project from start to finish. At Essential Data Corporation, the quality of our work is guaranteed. Contact us today to get started. (800) 221-0093 or email@example.com
Written by Kimberly Jones