Aejaz ShaikhPM I| Alyx Technologies India Pvt LtdPune, Maharshatra, India
How to differentiate Residual risk and Secondary Risks. Any live example for both the risk is welcome/ Saving Changes...
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Nasrullah MohammedPortfolio Manager| Advanced Electronics CompanyRiyadh, Riyadh, Saudi Arabia
Residual risks are those risks which are expected to remain after the planned response of risk has been taken, as well as those that have been deliberately accepted.
For example, let’s say you have identified a risk that there is a chance of rain which may last for one to two hours, and you have created the contingency plan to manage this risk. Okay, but what if the rain continues to fall for more than two hours? You will analyze this situation and create a fallback plan for this risk. This is an example of a residual risk.
As a project manager, you will ensure that each residual risk is evaluated properly. If you see that there is no action required, you will keep them on the watch list. However if they require any action, you must reduce the probability or impact of the risk.
Secondary risks are those risks which arise as a direct outcome of implementing a risk response. Simply put, you can say that you have identified a risk and created a response plan to manage this risk.However, if you implement this risk response plan, there is a chance of a new risk.This new risk caused by the response plan is known as the secondary risk.
For example let’s say you excavate a trench to stop passing animals on your agricultural land. However, there is a chance that during night, any traveler passing nearby may fell into the trench.
Secondary risks are also evaluated for their severity. They may or may not need a response plan depending on their impact on the project objective. If the impact is high, you will create a response plan; if it is negligible, you will just keep them on the watch list.
Residual risk is the remaining risk after mitigation.
You take insurance for a risk, the residual risk is the deductible that you will have to pay if the event occurs.
Secondary risk is a new risk that some risk mitigation created.
You fast track a project to mitigate the risk of missing the end date, it will create a risk of lower quality of work.
super article, thanks for sharing! Saving Changes...
Aejaz ShaikhPM I| Alyx Technologies India Pvt LtdPune, Maharshatra, India
Thanks for response !!! Saving Changes...
Mudassar KhanProgram (Project )Manager| Woodward Canada IncPeterborough, ON, Canada
Residual risk would be no matter how strong and resistant your earthquake stability design is it will have some thresholds.
Secondary risk is that if you eliminate a particular risk or devise a workaround, your budget, scope, time will be affected, you have to realign the baseline Saving Changes...
Residual risk is the remaining risk after mitigation.
You take insurance for a risk, the residual risk is the deductible that you will have to pay if the event occurs.
Secondary risk is a new risk that some risk mitigation created.
You fast track a project to mitigate the risk of missing the end date, it will create a risk of lower quality of work.
Sergio Luis ConteHelping to create solutions for everyone| Worldwide based OrganizationsBuenos Aires, Argentina
Apr 13, 2017 9:27 AM
Replying to Nasrullah Mohammed
...
Residual risks are those risks which are expected to remain after the planned response of risk has been taken, as well as those that have been deliberately accepted.
For example, let’s say you have identified a risk that there is a chance of rain which may last for one to two hours, and you have created the contingency plan to manage this risk. Okay, but what if the rain continues to fall for more than two hours? You will analyze this situation and create a fallback plan for this risk. This is an example of a residual risk.
As a project manager, you will ensure that each residual risk is evaluated properly. If you see that there is no action required, you will keep them on the watch list. However if they require any action, you must reduce the probability or impact of the risk.
Secondary risks are those risks which arise as a direct outcome of implementing a risk response. Simply put, you can say that you have identified a risk and created a response plan to manage this risk.However, if you implement this risk response plan, there is a chance of a new risk.This new risk caused by the response plan is known as the secondary risk.
For example let’s say you excavate a trench to stop passing animals on your agricultural land. However, there is a chance that during night, any traveler passing nearby may fell into the trench.
Secondary risks are also evaluated for their severity. They may or may not need a response plan depending on their impact on the project objective. If the impact is high, you will create a response plan; if it is negligible, you will just keep them on the watch list.
