What is the focus of a Risk Register?

• A. Quantifying financial losses
• B. Prioritizing risks based on potential impact
• C. Assessing legal responsibilities
• D. Ranking stakeholders' opinions

Answer: (B)

The focus of a Risk Register is on prioritizing risks based on their potential impact. A Risk Register is a vital tool in risk management that helps organizations identify and assess risks that could affect project objectives or operations. It typically includes a list of identified risks, their descriptions, the potential impacts they may have, and the likelihood of their occurrence.

By prioritizing risks, organizations can allocate resources effectively, ensuring that they address the most critical threats first. This prioritization process takes into account both the likelihood of the risk occurring and the severity of its potential consequences. It allows decision-makers to focus on risks that could have the most significant impact on their objectives, thereby enhancing the overall risk management strategy.

Other options address relevant aspects of risk management but do not capture the primary focus of a Risk Register. Quantifying financial losses pertains to assessing the monetary value of risks, while assessing legal responsibilities relates to compliance aspects. Also, ranking stakeholders' opinions is more about stakeholder engagement rather than direct risk management. Thus, prioritizing risks based on their potential impact encapsulates the essence of what a Risk Register is designed to achieve.