How do you use cross-functional risk dashboards and tools to track and visualize risk performance and trends?

1 Define your risk objectives and indicators

Before you create or use a cross-functional risk dashboard or tool, you need to define your risk objectives and indicators. These are the specific goals and measures that you want to achieve and track in relation to your project's risks. For example, you may want to reduce the likelihood or impact of certain risks, increase the resilience or recovery of your project, or enhance the risk awareness or culture of your team. Your risk objectives and indicators should be SMART: specific, measurable, achievable, relevant, and time-bound.

2 Choose your risk dashboard or tool

When selecting a risk dashboard or tool, there are many options available depending on your specific needs, preferences, and resources. Risk registers are simple tables or spreadsheets that list risks, sources, categories, ratings, owners, responses, and status. They are easy to create and update but may not provide enough detail or visualization for complex or dynamic projects. Risk heat maps are graphical representations of risks based on their likelihood and impact. They help you identify and prioritize the most critical or urgent risks and communicate them to stakeholders. Risk dashboards are interactive interfaces that display risk performance and trends using various charts, graphs, gauges, and indicators. This type of tool helps you monitor and evaluate risk management activities while comparing them to risk objectives and benchmarks. However, creating and maintaining a risk dashboard may require more technical skills or resources.

3 Customize your risk dashboard or tool

Once you have chosen your risk dashboard or tool, you need to customize it to accommodate your project's needs and context. When selecting data sources, you should make sure they are reliable, accurate, consistent, and up-to-date. Additionally, the data analysis should be valid, transparent, and aligned with risk objectives and indicators. Data visualization should be relevant, accurate, and consistent to emphasize the key findings or messages. All these aspects must cover all the relevant aspects of your project's risks.

4 Use your risk dashboard or tool

Once you have tailored your risk dashboard or tool to your needs, you need to use it to track and visualize your risk performance and trends. When doing so, consider the frequency of updates and reviews, the audience you share it with, and the action you take with the information and insights. Make sure the frequency is appropriate and realistic, the audience is relevant and informed, and the action is timely and effective. This way you can capture any changes in your project's risks and make sure your risk dashboard or tool meets your objectives.

5 Review and improve your risk dashboard or tool

Finally, you need to review and improve your risk dashboard or tool, based on your feedback and results. Evaluation should be conducted systematically and objectively, involving users and stakeholders. Learning should be continuous and collaborative, fostering a culture of risk management excellence. Innovation should be relevant and feasible, enhancing risk management capabilities and outcomes. All of these aspects should be considered when assessing the performance and impact of your risk dashboard or tool, such as usability, functionality, reliability, validity, or value.