Difference Between Risk Status and Risk State
Risk status tracks a risk's current progress and actions taken to manage it. In contrast, Risk State provides a broader evaluation of the risk’s context, including likelihood, severity, and contributing factors.
Risk Status vs Risk State:
- Definition:
- Risk Status: Shows progress and specific actions taken (e.g., active, resolved).
- Risk State: Examines overall context, such as probability and potential impact.
- Purpose:
- Risk Status: Focuses on immediate updates and tracking.
- Risk State: Helps assess priorities and guide decision-making.
For example, a potential labour shortage may have a state classified as "high likelihood and high impact," while its status is "active," indicating mitigation is in progress. Both concepts work together in the construction risk management framework to monitor and resolve uncertainties effectively.
Types of Risk Status
Risk status types categorise risks by their condition and progression, enabling teams to focus efforts on the most critical issues while monitoring others for potential changes. These types are often aligned with a broader Risk Response Plan, ensuring that strategies like mitigation or escalation are applied effectively.
Common Types of Risk Status:
- Active: The risk is ongoing and requires immediate action to minimise impact.
- Resolved: The risk has been fully addressed and no longer poses a threat.
- Monitoring: The risk is stable but requires observation for potential changes.
- Escalated: The risk has worsened and demands higher-level intervention.
- Mitigated: Steps have reduced the risk’s severity, though it still exists in a controlled state.
These categories ensure structured risk tracking. For instance, an active risk like equipment failure might require immediate repairs, while a monitoring risk such as weather-related delays involves periodic reviews.
Examples of Risk Status in Construction
Here are practical examples of risk status in construction projects:
- Risk Identified 1: Delivery delays for essential materials due to supply chain issues.
- Initial Status: Active – delays threaten critical milestones.
- Response: Secured alternative suppliers and prioritised key deliveries.
- Updated Status: Mitigated – delays minimised but still monitored.
- Risk Identified 2: Adverse weather disrupts excavation work.
- Initial Status: Active – heavy rainfall halts critical tasks.
- Response: Rescheduled outdoor activities and implemented weather protection.
- Updated Status: Monitoring – tasks resume under contingency measures.
- Risk Identified 3: Labour shortages impact the timeline for electrical installations.
- Initial Status: Escalated – insufficient workforce jeopardises deadlines.
- Response: Partnered with subcontractors and accelerated recruitment.
- Updated Status: Resolved – staffing restored, timelines aligned.
- Risk Identified 4: Crane malfunction delays structural lifting operations.
- Initial Status: Active – halts progress on major tasks.
- Response: Activated backup equipment and arranged urgent repairs.
- Updated Status: Resolved – operations resumed without further delays.
These examples show how real-time risk monitoring and clear updates ensure minimal disruption to construction schedules and budgets. Tools like a Risk Register or risk mitigation software streamline this process.
How Is Risk Status Tracked in a Risk Register?
Risk status is tracked in a Risk Register, a tool designed to centralise, document, and monitor project risks. Using a Risk Register Template simplifies the process by providing a structured format to record, update, and monitor risks systematically throughout the project lifecycle.
Steps for Tracking Risk Status in a Risk Register:
- Identify and Categorise Risks: Record risks with descriptions and classifications (e.g., operational, financial, environmental).
- Assign a Status: Label risks as active, resolved, mitigated, or escalated to reflect their condition.
- Document Action Plans: Log actions taken to address each risk, such as mitigation or escalation measures.
- Update Regularly: Revise the status as conditions change, ensuring accurate tracking.
- Monitor Continuously: Note observations, triggers, or developments requiring additional action.
For example, an equipment breakdown may initially be marked as "active." After activating backups and completing repairs, it is updated to "resolved." Using tools like risk tracking dashboards or construction risk management software, project teams can automate updates and ensure real-time transparency, minimising disruptions.
