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5 Step Risk Assessment Template: Assess Risk With Coda
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5 Step Risk Assessment Template: Assess Risk With Coda

Perform a thorough risk assessment of your projects with these 5 steps and template you can share with your team.
Risk is a natural part of life. It doesn’t matter what you’re doing, there’s at least some risk involved (and we’re talking about everything from brushing your teeth to wrestling alligators).

The same holds true for businesses. Risk is just a part of everything you do, whether you want it to be or not. However, just because there’s risk involved, doesn't mean you can’t still make a project work. Risk assessment is a critical part of project management and helps you determine whether or not you can (or should) risk the risk.

What is risk in project management?

Before talking about risk assessment, it helps to talk about what risk is in project management. In this case, risk is anything that could potentially happen that affects the desired outcome of a project. This could be anything that affects the people, processes, technology, and resources that you use in a project.

It’s worth noting that
risks
are different from
issues
. Risks are things that might happen, where issues are things that have already happened. For example, if you know there could be an interruption in your supply chain, over the course of a project, that’s a risk. If your servers break on launch day, that’s an issue.

What is risk assessment?

Risk assessment is the act of looking at the risk through the lens of the various aspects of your projects. It helps you figure out the likelihood of risk happening, what potential risks could be, and how those risks might impact your project.

Risk assessment isn’t designed to help you avoid risk, per se. It’s more about helping you decide whether or not the risk is worth it.

Why it’s important for a business to conduct risk assessment?

Risk assessment may feel like just another thing that you have to deal with when you’re running projects, but the reality is it’s a critical part of your workflow. Rather than focus on what could happen if you don’t conduct a thorough risk assessment, let’s look at how it helps your business.

Proactivity

The best way to deal with a problem is to be ready for it (even if it may not happen). Sure, it means you could be worrying about something that doesn’t happen. But if it does and you’ve got a plan in place for mitigating the risk, you’ll be glad you took the time to come up do the assessment. If you’re stuck in a cycle of reacting to problems after they happen, you’re never going to get ahead of potential risks in your business and it’s always going to feel like you’re playing catch up.

Accountability

Just like being proactive, conducting risk assessment gives you a way to be accountable when things go wrong. Rather than stumbling around trying to explain why something suddenly went wrong to a client, you can go to them and say, “So, as we discussed, this happened. Luckily, we have a plan in place to deal with this exact scenario.”

It doesn’t matter how bad the risk might be, if you’ve got a plan in place to deal with it, you’re showing your clients that you care about positive outcomes, regardless of what happens.

Transparency

People don’t like hearing about risk, but like hearing that you’re prepared just in case something comes up. Running a risk assessment at the beginning of your projects gives you a way to come to your clients and show them what
might
happen over the course of a project.

You might think that showing people what could go wrong is a bad thing, but when you also show them that you’ve got plans in place to mitigate the risk, you’re increasing confidence. Remember what we said about proactivity? It’s better (and frankly more professional) to show your clients that you’re proactively managing risk, than it is to react to problems after the fact.

Improved collaboration

Fewer things improve collaboration than having plans for everything, including risk. We’ve all been in situations with people who are just flying by the seat of their pants, dealing with the various problems as they come up, rather than having a plan for all the things.

Risk assessment won’t help make your collaborative projects smoother, per se. But it will help you better manage those moments when you encounter an identified risk, so everyone can get back to work faster.

How to do a risk assessment in 5 steps

You think that with all the benefits that come with the process, that risk assessment would be a long, complex thing. The reality is, though, that you can run through the entire assessment process pretty quick, if you know the steps.

Step 1: Identify the risks.

Before you can do anything with risk, you need to identify what they might be within any given project. As we defined above, risk is anything that could potentially impact the outcome of a project. It helps to get kind of creative during this step, so that you’re able to capture everything that could possibly happen, regardless of how far-fetched it might seem.The more risk you identify, the better prepared you’ll be.

Step 2: Determine the likelihood of risk happening.

Once you’ve identified the potential risk within a project, rank everything by how likely it is to actually happen. For example, it’s not likely that your office is going to burn down in a fire (unless you live in a fire prone area), but it’s entirely possible that your data center could burn down or that your network will crash on launch day.

You do this to help you prioritize the areas you need to prepare for. That fire? It probably doesn’t need a response plan and can be ranked as low risk. The network, though, that
could
actually happen. In fact it happens to companies all the time when they’re launching new products, so this should be ranked high as a type of risk you’ll need to be ready for.

Step 3: Assess the risk.

Now that you’ve identified the risk and decided which ones are most likely to happen, it’s time to assess the impact. If the network crashes on launch day what happens? Odds are you’ve blown your launch and will have a lot of unhappy customers. For each risk you identify, look at the impact on your business, your customers, and your collaborators.

Step 4: Come up with a plan.

You can’t mitigate risk if you don't have a plan. Well, you could, but it won’t be an effective process and odds are it’s only going to take the risk out of your way long enough to complete the project. Rather than fly by the seat of your pants, come up with a management plan for each risk you identified in the earlier steps.

Step 5: Document everything.

As always, the more you document, the better off you’ll be. This doesn’t just mean taking notes during the previous four steps. Your goal here is to almost create a manual for dealing with each kind of risk you may encounter during a project. People need to know what works, what doesn’t work, and whether or not your assessment was accurate to begin with.

What is a risk assessment template?

A risk assessment template gives you a process to follow for assessing any potential risk that comes up during your project. It gives you a way to discover what the risks may be, what the outcome of those risks are, and whether it’s worth pushing forward with the project.

A risk assessment template helps you by giving you a clear path to follow when looking at any risks you may encounter during a project. These templates are designed to make sure that you don’t miss any key steps in the risk assessment process.

How to use this risk assessment template?

Step 1: Defining Projects and a Timeline

Starting with the
page, you should define your organization’s goals and the dates for when you are planning to achieve them. By filling in the
Projects
and
Description
section on the
table, you are doing the first part of figuring out the related risks for your organization. The Risks associated to your project will be later filled in automatically once you complete
Step 2
.

Below the Projects Table, you are able to see a visual timeline of the projects:
. You can see the
Start Date
,
End Date
, and
Duration
of the project. This will allow members of your team to see a practical timeline of projects.

Step 2: Identifying Risks

The next step of using this template is identifying
in this page. By clicking the
Add Risk Button
, you can add in details about the
Risk
, the
Related Project
, its
Probability
(from a scale of 0-100%), and the
Impact
this risk may have on your project.

After adding details about the risk you may have added, click the
Add Action
button to address the risk with a potential action that can reduce its impact or delete the risk in its whole. All Actions are grouped by risks in the
table. In this table, team members are allowed to
Vote
on ideas they like, and also give
Feedback
on action ideas.

In
Step 3
, we will dive into the Archive.

Step 3: Keeping up with the Archive

In the final step of the template, the
page allows all team members of the organization to see archived Risks and Actions once they have been
Addressed
or
Executed
on the respective tables.

👉 Get started with: risk assessment template
Copy this template

Need a risk assessment template to get you started? Not surprisingly, we’ve got just the thing. You can easily copy this template and customize it to your heart’s desire to suit your business and its specific needs. Other risk assessment templates include this
and this
.

Common FAQs about a risk assessment template

How do you evaluate risk?

Are risks always bad?

Risk assessment vs. risk analysis


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