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TOPIC: Residual Risk Vs Secondary Risk

Residual Risk Vs Secondary Risk 5 months 2 days ago #16591

  • Daniel Kokkos
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Can someone please elaborate on the differences between Residual Risk vs Secondary Risk. I understand the basics and definitions but I keep getting stuck on that type of question. Is there a good analogy that could be a good algorithm for understanding the key differences? #pmp

Residual Risk - Risks that remain after a risk response
Secondary Risk - New risks that are created as a result to a risk response

Residual Risk Vs Secondary Risk 5 months 18 hours ago #16608

  • Kathy Castle
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Hi Daniel,
You can read this article related with the topic Residual Risks vs Secondary Risks .

Residual Risk Vs Secondary Risk 5 months 13 hours ago #16611

  • Daniel Kokkos
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Thank you for providing the information. I still don't see a clear distinction between the two. It seems like they are both the results of risk response planning. Rita says after you have avoided, exploited, mitigated enhanced, transferred, shared, etc there will be still risks that remain. Those residual risks are that are passively accepted should be properly documented and reviews throughout the project to see if their ranking has changed.

Similarly- Secondary risks Rita says a response to one risk will create the possibility of new risks that would otherwise not have occurred. ex if a portion of the project work is outsourced to a seller because the project team does not have expertise to complete the work efficiently there may be a secondary risk of the seller going out of business.

So the residual risk is remaining after(transfer, share, exploit). vs the secondary shows up after the response plan. . . . is that correct? It is very subtle and confusing to me. Does anyone else share this confusion?

Residual Risk Vs Secondary Risk 4 months 2 weeks ago #16668

  • Joe Pang
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Hi Daniel,

I used this example to help my study last year, hope this will help you too

From Simplii Learn

For instance, you may have established a risk of rain that may last an hour or two that may disrupt some of your planned meetings. To manage this risk, you have scheduled your other meetings with a buffer of a couple of hours. This way, even if it rains for two hours, your other plans are not disrupted.

This doesn’t eliminate the risk of your schedule going astray; it only lowers the risk. Whatever risk that still remains is termed “residual risk.” As an example, it is possible it pours down all day, which disrupts your subsequent meetings. In this case, the contingency plan (if the risk occurs) could be that you attend the meeting remotely.

This may lead to another risk that your presence during the meeting may not be as effective or impactful had there been no rain and you were present in person, which is a secondary risk.
Toronto-based project manager, currently engaging in paperless transformation projects for utilities companies

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