Risk management is an attempt to recognize and then manage threats that could severely impact or bring down the organization. Generally, this involves identifying possible threats to the organization and the probability of their occurrence, which in turn appropriate actions should be taken to address the most likely threats. These threats can either be internal (i.e. employee related lawsuits) or external (i.e. natural calamities), that is why more and more companies are into risk management nowadays and is becoming a management practice that is as important and essential as financial management. To help determine these threats, a risk management work sheet is needed.
A risk management work sheet is a tool that is used by risk managers and / or leaders to keep track and document risk that may happen on a certain project. The work sheet provides a logical starting point to track the process and after everything has been set and implemented, the risk level of the task will then be graded from low to extremely high, depending on the result that is more likely to happen. Planners can also use the work sheet to document risk management steps taken during planning, preparation, and execution of all tasks. It is important to remember that the risk management work sheet can be used to track all possible risk, not just environmental-related ones.
After every risk has been determined, the last step of the process is not done on the work sheet anymore. This is where the evaluation process comes in. Assessing how each control will be monitored for implementation will help determine which of the controls worked and if they can be improved to prevent hazards or threats from happening in the future.