Excel Risk Management Tools for Beginners
Summary
This tutorial will guide beginners through the process of using Excel to create and manage risk assessment tools. No prior experience in risk management is needed; just a basic understanding of Excel.
Step 1: Create a Risk Matrix
- Open Excel.
- In cells A1 to A5, list the risk levels (e.g., Low, Medium, High).
- In cells B1 to B5, list corresponding numeric values (e.g., 1, 2, 3).
- This simple matrix will help you evaluate risks.
Step 2: Identify and List Risks
- In cell A7, type "Risk Description."
- In cell B7, type "Risk Level."
- List your risks in column A, starting from A8.
- Corresponding risk levels in column B, using the values from your matrix.
Step 3: Visualize Risks with a Chart
- Highlight cells B8 to the end of your risk levels.
- Go to the 'Insert' tab.
- Choose 'Column Chart.'
- This will help you visualize the distribution of risk levels.
More on Excel charts can be found here.
Step 4: Apply Conditional Formatting for Clarity
- Highlight cells B8 to the end of your risk levels.
- Go to the 'Home' tab.
- Click 'Conditional Formatting.'
- Choose color scales to apply color according to risk levels.
Learn more about conditional formatting.
Step 5: Calculate Average Risk Level
- In cell B6, type "=AVERAGE(B8:BXX)", where XX is the end of your risk levels.
- This calculates the average risk level for easy analysis.
Step 6: Protect Your Risk Matrix
- Highlight your matrix cells.
- Right-click and choose 'Format Cells.'
- Go to the 'Protection' tab and check 'Locked.'
- Go to 'Review' > 'Protect Sheet' to apply protection.
Find out more about Excel protection here.
Step 7: Save Your Workbook
- Go to 'File' > 'Save As.'
- Choose a location and save your risk management workbook for future reference.
Conclusion
You've created a basic risk management tool in Excel. You can now list, evaluate, and visualize risks effectively. This tutorial helps beginners understand risk assessment and how to manage it using Excel. Always remember to save and protect your work!
If you have any questions or want to know more, please leave a comment in the comment section below!
