Video Description

This lesson discusses other types of risk. These include:

  • Residual risk
  • Secondary risk
  • Work around
  • Risk owner

[toggle_content title="Transcript"] One other thing that you have to understand for the risk knowledge area, are these terms. Residual risk, secondary risk, workaround and risk owner. Residual risk is risks that remain around after the response has been implemented. There is still some risk remaining. Example could be, you ordered equipment from china. That equipment comes in, it doesn't work. Now you have a failed product. In our decision tree, we are going to sell that product at a reduced cost. The residual risk is you have a bad product its, still there, you give it to another client. They might not accept it for the quality that it has. Secondary risk is a risk that occurs, because you implemented the first one. Say a fire main breaks or a water main breaks, you stop the water and now that pressure is building up in the pipe so it could break somewhere else causing damage to another location. Workaround is on-the-fly, so you are trying to fix the problem as it occurs that was unplanned. In electronics it was a radio breaks, these radio I worked on were used by the navy, so we're out at sea. You have to have communications the radio breaks. The work around is trying to fix the equipment to try working again. Risk owner is if a risk occurs, who's responsible for that risk. A risk owner going back to a risk plan. He is the person you identified as the person responding if that trigger occurs. [/toggle_content]

Course Modules

Project Management Professional (PMP) - PMI

Instructor Background