What are scorecards and risk registers?

Scorecards and risk registers are indeed valuable tools of risk management that describe and record risks. A scorecard typically summarizes performance measures and allows organizations to track their effectiveness in managing various risks over time. It can include metrics related to financial performance, operational efficiency, customer satisfaction, and other critical areas that contribute to an organization's risk profile.

On the other hand, a risk register is a document that systematically records identified risks, their impact, likelihood, and any mitigation strategies in place. It serves as a central repository for all project-related risks and is essential for ongoing risk management. This tool enables organizations to prioritize risks based on their potential impact and take proactive measures to either mitigate or accept those risks.

The other options do not relate to the functions of scorecards and risk registers. Financial reports focus on overall company performance rather than specific risks, auditing documents relate to the evaluation of financial statements rather than risk tracking, and project management schedules deal with timelines and deliverables rather than the identification or management of risks. Understanding the role of scorecards and risk registers is crucial for effective risk management practices.