The Benefits of a Risk Database

William Pollard, a businessman and author, once said, "Information is a source of learning. But unless it's organized, processed, and available to the right people in a format for decision making, it is a burden, not a benefit."

A risk database is a repository that can organize, process, and format the information that is collected and used in the risk management processes. The use of a risk database throughout a project's life cycle will make documented information easily accessible for important decision-making purposes.

Project risk information that you may need to store in a database could include agreements, current priorities, specifications, project plan changes, instructions, results, and other information depending on the nature of the project.

You must enter information into the database on a regular basis so that this information is up to date.

You can use a risk database not only for storing and retrieving data, but also for analysis. A database can sort information into categories and generate reports based on what you need to know.

The database can perform complicated calculations in seconds, which provides information that may help decision makers avoid mistakes. You can analyze project information for risks and alert team members about any emerging risks.

Over time, your company will gain experience in keeping track of project risks in a risk database. This documentation can be compiled for a single project or across similar projects, and be used as lessons learned for future projects. Prior to planning new projects, team members can search through the lessons learned to avoid making similar mistakes.

You can use a risk database to help you avoid mistakes and plan effectively for future projects. A risk database can organize and format information so that it is a learning source to help you make important project decisions.

Coding Project Data for Extracting and Sorting

As a project progresses, project managers need to sort tasks based on their attributes. The easiest way to do this is to take advantage of the coding structure capabilities of whatever project management software you are using.

Project activities should be assigned a coding structure that will allow them to be sorted or extracted based on attributes such as, responsibility, geographic area or building, and project phase.

Sorting using the responsibility attribute will provide information about who is responsible for an activity. This may be an individual, a group, or a team.

The geographic area or building attribute tells you where an activity will take place. The geographic area may be a specific location such as the Dickson Building, or a general area such as a client's site.

The project phase attribute refers to a particular stage of development. Sorting by project phase will provide information about which activities will occur during specific phases of the project.

Jennifer is the project manager for BMR Railway's passenger car renovation project. She needs to find out several important details about project activities, and she needs them in a hurry. With a properly configured coding structure Jennifer will be able to quickly sort and retrieve this information.

Using the responsibility attribute, she is able to find out that four activities are being overseen by the project's lead designer.

Using the geographic area or building attribute, Jennifer discovers that 9 out of 10 project activities will occur at the rail yard on Wilber Avenue East.

Using the project phase attribute, Jennifer learns that the seat-recovering activities will be taking place during the second phase of the project.

As a project manager, you will be called on to sort and extract project-related data. By using a properly configured coding structure, you will find you can quickly and easily isolate the information you need.