A risk audit should be conducted at regular intervals in accordance with the risk management plan, particularly for major and medium risks. For significant risks, it is advisable to consider signing off on the risk prior to its closure, akin to the HAZOP methodology.

The purpose of a risk audit is to evaluate the effectiveness of risk management and to track trends over time. Its aim is to identify weaknesses within the current process and to recommend initiatives for process improvement.

A frequently asked question is whether a project is inherently risky. Determining the risk level of a project also influences the risk management approach at the project or program level. If a project is sizable and utilizes a considerable amount of organizational resources, it may be classified as complex and risky. The challenge lies in defining the complexity and the overall risk of the project.

To address this, one must consider both internal and external factors and assign a risk score accordingly. By integrating these three (3) elements—the risk score, the internal and external factors—a comprehensive assessment of the overall project risk can be achieved. A well-crafted questionnaire, informed by expert opinions and interviews with key stakeholders, can facilitate this process. It is crucial to scale the risk management efforts in proportion to the project complexity. The system for measuring risk should align with the risk register to accurately reflect project complexity. A mere tally of high “Red” risks is not sufficient to characterize the overall project risk.

GleeYM has developed a risk register that quantifies the overall project risk. Converting data, including textual information, into charts is essential to providing management with clear and concise information indicative of the project’s health. Key Performance Indicators (KPIs) are necessary to detail the overall project risk. The indicators for assessing Project Risk Health are as follows: