How to Write Good Risk Statement

What is a Risk Statement?

• A risk statement is the name of the risk. It is how the risk is formulated when it is written down. It is how we name the risk. Risk statement to ensure that it is explicitly clear to anyone what the risk is.
• Good risk statements helps understanding of the risk, supports good decision making and makes risk management efforts more effective. Poorly worded risk statements can cause misunderstanding, bad decision making and can ultimately lead to a waste of time, money or even project failure!

How to Write a Good and Clear Risk Statement

First, you need to understand and distinguish between the risk, the cause of the risk, and the effect and consequences of the risk. This helps avoid misunderstandings and clarifies your list of risks.

A good risk statement will communicate three elements:

• The Cause: Why the risk is happening.
• The Risk Event: The actual risk that, if it happens, could impact the project.
• The Impact (Effect) of the Risk: What will happen if the risk materializes.

By writing risks as proper risk statements, the project team ensures clarity and understanding. For example:

"A cyber attack on Server 1 could stop the production line, resulting in a daily loss of $530,000."

How to Put Risk Statement into the Risk Register

1. Open Risk register
2. Create new Risk
3. Put the risk statement as a name of the risk
4. If your risk statement is long, use "Long description"