What is a risk register?

A risk register is a critical component in risk management practices, serving as a comprehensive tool that enables organizations to systematically track identified risks along with their assessment and response strategies. It captures essential information about each risk, including its nature, potential impacts, likelihood of occurrence, and the strategies in place to mitigate or respond to these risks.

The use of a risk register facilitates effective communication within the organization regarding risk management, allows for ongoing monitoring of risk statuses, and supports decision-making processes by providing a clear framework for risk analysis and response. By maintaining a detailed record of risks, organizations can better allocate resources, prioritize their responses, and ultimately enhance their resilience against potential threats.

In contrast, the other options do not accurately capture the purpose of a risk register. Organizational policies or manuals are focused on guiding behaviors and processes rather than tracking risks. Financial reporting is centered on the financial health of an organization and does not directly address risk management. Customer relationship management systems are designed to manage customer interactions and data, without the specific focus on identifying and managing risks faced by the organization.