Secondary Risks | Residual Risks | Workaround | Business Risks | Pure Risks

Secondary Risks

Secondary risks are the risks that arise when you mitigate an original risk. For example, if you serve hot coffee in cold weather to ensure project team remains warm there could be a risk of people spending more time than usual on breaks

Residual Risks

Residual risks are such risks that remain even after implementing a risk response. So when you serve hot coffee, there is still a possibility that someone from your team may catch cold

Workaround

We talked about Workaround as a strategy for dealing with risks that you accept. Workaround is basically an unplanned response. So residual risks may fall in the category where you ‘workaround’ if they materialize

Business Risks

A business risk is a risk that possess a potential gain or loss. This means that it could be a risk or an opportunity but you will know it only once it materializes. For example, rain could be a risk on a cricket match. But when it does rain and eats up an hour, you realize that the match has gotten even more interesting due to lesser number of overs

Pure Risks

Unlike business risk, pure risk will only result in a loss. These risks are often insurable. For example a medical or term insurance is basically transferring a pure risk

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