What is a Residual Risk & What is Secondary Risk?

The video tutorial explains the concepts of inherent, residual, and secondary risks in risk management. Inherent risk is the initial risk before any control measures are applied. Residual risk is what remains after implementing risk controls, while secondary risk arises from the risk response itself. The tutorial emphasizes the importance of reviewing and updating the risk register to manage these risks effectively. It concludes by encouraging a habitual approach to risk management, ensuring that residual and secondary risks are identified and addressed as they emerge.

What is the term for the risk that remains after implementing control measures?

• Inherent risk

• Residual risk

• Primary risk

• Secondary risk

Which type of risk arises as a direct result of implementing a risk response?

• Tertiary risk

• Secondary risk

• Residual risk

• Inherent risk

Why is it important to update the risk register after applying a risk response?

• To ensure all risks are eliminated

• To evaluate the impact and likelihood of residual and secondary risks

• To avoid any future risks

• To finalize the project

What is a key characteristic of effective risk management?

• It is a one-time process

• It is an adaptive and iterative process

• It focuses only on inherent risks

• It ignores secondary risks

What is the main takeaway regarding the importance of understanding residual and secondary risks?

• They should be ignored in most projects

• They are useful to know but not vital

• They are only relevant in large projects

• They are the most critical aspects of risk management