What is a RAID Log?
Project management involves multiple facets, whose implementation and monitoring can be quite time-consuming. Therefore, it is crucial for project managers to identify opportunities that help increase efficiency and quality. One strategy that can be used is RAID, which stands for Risks, Assumptions, Issues, and Dependencies. A RAID Log is an effective project management tool that is aimed at centralizing and simplifying the collection, monitoring, and tracking of project information. Read on to learn more about the RAID log in managing projects.
Risks and Issues in RAID
Risks are future uncertainties that can affect a project negatively. A project manager should put measures in place that help to deal with risks that may arise along the way. Risk-related tasks include risk identification, classification, risk evaluation, and creating risk response plans. For a project to run smoothly, there should be as few risks as possible.
Also, it is crucial that risks are identified in the early stages before they advance to severe issues that can cause an entire project to fail. Some of the risks and issues that can come up are:
1. Resource Availability
Perhaps the biggest concern among project managers is whether they will get the resources they need throughout the project. With proper planning, a project manager can guarantee that resources won’t run out midway through the project. Apart from resource availability, resource continuity should also be taken into account. To put it simply, this is meant to ensure that the same resources are available throughout the duration of the project. Replacing resources in the middle of the project can cost a considerable amount of time and money.
2. Market Risk
Another uncertainty that must be taken into account is market risk. Put simply, this is the impact on a project that can result from changes being introduced into the marketplace. For instance, consider an industry where technological innovations happen rapidly and occur frequently. For projects to thrive in such an environment, they must be completed in time, before they are rendered obsolete.
Project managers also need to assess whether the organizations they work in are fluid. For instance, are the project owners likely to change their minds? Will you be introducing your product in a market that changes quickly? If so, there should ample flexibility on the part of the project manager so as to adapt to ever-changing circumstances.
The laws that apply in a state can also pose risks to your project. So, before anything else, project managers should familiarize themselves with the laws that apply to their industry, to avoid breaching them unknowingly. They also need to check the corporate structures being adopted by stakeholders. This way, they can ensure that the actions of a particular player don’t put the entire project at risk.
There are two main varieties of dependencies – outbound and inbound. Outbound means that the project relies on one activity being carried out by a particular team so as to proceed to another task or deliver results. Conversely, inbound means that other parties are relying on a particular team to finish a task before they deliver results. An example of an outbound dependency is when one has to wait for the legal department to review and approve a particular document before being allowed to make any adjustments to the system.
Getting a good understanding of the dependencies helps to identify and solve problems in their early stages. Other examples of dependencies are:
- The owner of a system needing to complete coding changes before another individual can perform end-to-end testing
- When real estate officers must approve building designs before construction projects commence
People make a lot of assumptions when undertaking a particular project. It happens most frequently during the initial stages of the project. The one thing you shouldn’t forget to do is to document these assumptions formally. This way, if disputes arise later, the stakeholders involved can always refer to the fine print.
The RAID Log
Now that we are familiar with what the RAID acronym stands for, the next thing to look at is the RAID log. The log is simply a list of all the risks, assumptions, dependencies, and issues. It is introduced at the project’s initiation stage, where it’s used to capture vital elements. The raid log becomes refined as the project progresses.
The RAID log highlights each factor separately. Here are the main elements listed under each section of the log.
1. Risks and Issues Section
The risks and issues part includes:
- A distinct identifier for easy referencing
- The date when a particular item is logged
- A summary of the key issue or risk
- A detailed description of the issue or risk
- The impact that could arise if the risk develops into an issue. Will the impact likely be high, low, or medium?
- Probability or likelihood of the risks occurring
Every risk and issue needs a mitigation plan. There are several ways of mitigating risks, such as informing your management of the issue or risk, accepting the risk and acknowledging that there’s nothing that can be done about it, or taking the necessary action to eliminate a risk.
2. Dependencies Section
Dependencies always need to be agreed upon by the parties involved. This means that a project manager cannot hold a stakeholder liable for an issue that he did not agree to in the first place. The dependencies section of a RAID log highlights:
- A distinct and sequential indicator for easy referencing
- The date an issue is logged
- Specification of whether the dependency is inbound or outbound
- A detailed description of the dependency
- A summary of the dependency
- The specific date when the dependency will be delivered
- The parties that consent to the dependency
- Comments – All the comments are listed in the log. Each comment needs to be preceded by the date and name of the individual who made the comment.
3. Assumptions Section
It’s important to always document the assumptions that come up in the course of a project. Doing so helps to prevent miscommunication and potential conflicts. Assumptions are useful at the start of a project. The assumptions section will highlight:
- A distinct and sequential indicator for easy referencing
- The date when an item was logged
- A summary of the assumptions
- A detailed description of the assumptions
- Status – are the items brand new, in progress, or closed?
- The stakeholders consulted when coming up with the assumptions
The Bottom Line
The RAID log is a must-have communication tool for project managers. Not only does it make it easy to track activities, but it is also key for keeping all stakeholders informed. The RAID log should be updated from time to time to keep it accurate, up-to-date, and effective.
CFI is the official provider of the global Financial Modeling & Valuation Analyst (FMVA)™ certification program, designed to help anyone become a world-class financial analyst. To keep learning and advancing your career, the additional CFI resources below will be useful: