Question

There are three steps to creating a strong risk register:

Risk Identification

Risk Analysis

Risk Response Plans

Risk Identification — Strong process of identifying risk is central to good risk management of projects. There are other methods that may be used to build a danger list, but these are the most significant ones: brainstorming; topic matter experts; checklists; lessons learned; study of documents; SWOT examination; Delphi technique; examination of hypotheses and diagrams of impact. Clearly it is not feasible to mention all the threats to a project, nor is it a realistic objective. The real world encompasses simply too many variables. Yet there is a danger registry for delivering a fast and definitive report to the project manager when things go wrong.

Risk Analysis — There are two forms of risk analysis: Predictive Analysis that includes assigning a likelihood and effect score to each risk in the registry. And quantitative analysis which means that if a likelihood and effect score is assigned to each risk case, a prioritization is evaluated and compared to the other risks. Quantitative analysis includes utilizing empirical methods to assess the project's impact on the risk.

Danger Response Plans — Design of response plans is the third and final phase towards creating a risk list. There are four directions inside the Risk Register to react to each danger event: Stop. Eliminate the hazard or defend the project against its impact. Avoid. Transfer. Mitigation and acceptance.

What else can I add to this statement

Answer 1

1)Risk Identification - Risk can be identified in a project in many ways -:

i)Creating assumptions and analyzing their reliability can help to find risk.
ii) By using Delphi method in which a group of experts are queried
iii) Properly learning about the project, its technical details, and its people will help to identify the risk earlier.

2) Risk Analysis - Risk can be analyzed by two ways

i) Qualitative Analysis - This involves assigning each risk in the register a probability and impact score.

RISK = PROBABILITY * IMPACT

This method can also be used to determine monetry value of risk  

EMV( Expected Monetry Value) = PROBABILITY * IMPACT
  
Probability - Chances that the risk event will occur.
Impact - Consequences of the risk event.

ii) Quantitative Analysis - Quantitative analysis involves the use of analytical tools to determine the effect of the risk on the project. Once each risk event is given a Probability and Impact score, it is analyzed and compared to the other risks to determine a prioritization.

3) Danger Response Plan - The four ways by which a risk can be responded -:

i) Avoid - Eliminate the threat or protect the project from its impact.This can be done by calling expertise to remove technical risks or by changing the scope of the project.

ii) Transfer - This involves moving the impact of the risk to a third party. This can be done by taking insurance.

iii)Mitigation - It is used to reduce the probability or impact of the risk for example work equipment designed to reduce safety risk

iv)Accept - All projects contain risk. As a minimum, there is the risk that it does not accomplish its objective. Accepting risk is a strategy like any other, and should be documented and communicated like any other strategy.