What must be documented for risk management?

Documenting the impact of identified risks is crucial for effective risk management because it allows project managers and teams to understand the potential consequences stemming from risks that could affect project objectives. This documentation facilitates informed decision-making regarding which risks to prioritize and how to strategize mitigation efforts. By assessing and recording the impact, projects can be better prepared to address issues that may arise, thus enhancing overall project resilience.

In risk management practices, understanding how a risk can affect project scope, schedule, cost, or quality ensures that stakeholders are aware of potential challenges and can work proactively to minimize negative outcomes. This leads to more comprehensive risk planning and contingency strategies, ultimately resulting in a smoother project execution.

While aspects like budget adjustments, team member assignments, and client preferences are undoubtedly important in project management, they do not specifically address the foundational needs of risk management, particularly the assessment of risks and their potential impacts on the project. Therefore, documenting the impact of identified risks is a key component in creating a robust risk management plan.