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What is Secondary Risk? John Spacey, updated on
Secondary risk is a new risk that is the result of risk treatments. In general, nothing is without risks and attempts to avoid or transfer risks typically trigger new risks. In some cases, secondary risks can be worse than primary risks. In other words, attempts to manage risk can potentially result in an overall increase in risk. The following are a few examples of secondary risks:
1. Risk AvoidanceAn aircraft manufacturer cancels the development of a new aircraft model to avoid the mounting risks associated with the project. The cancellation avoids the project risks but adds the secondary risk that competitors will come out with more advance models and sales will decline.2. Risk ReductionA student reduces the risk that she will fail a math exam by staying up all night studying. This action increases the risk that she will get in an accident driving in the morning after staying up all night intensely concentrating.3. Risk TransferA homeowner transfers the risk of a flood to an insurance company by purchasing flood insurance. Their is a secondary risk that a major flood will cause the insurance company to go bankrupt and it will be unable to pay.RiskThis is the complete list of articles we have written about risk.If you enjoyed this page, please consider bookmarking Simplicable.
Business RisksA list of common business risks.Risk TreatmentThe five things that can be done about risk.Risk Management Effectiveness
A metric for measuring risk management.
Positive RiskThe potential that you'll achieve too much of a good thing.Dread Risk
Any risk that people have a strong aversion too.
Risk TakingThe definition of risk taking with examples.Risk ExamplesA list of risk examples by type.Risk Probability vs Risk ImpactThe two main factors in modeling a risk.Calculated RiskA definition of calculated risk with an example.Relative Risk
How to calculate relative risk with examples.
Project RiskA list of common project risks.Project RiskA list of common project risks.Project StakeholderA list of common project stakeholders.Risk vs Issue
The difference between a risk and an issue.
Risk Register
A guide to creating a risk register with an example.
Risk Perception
A definition of risk perception with examples.
ImplementationThe common types of implementation.Project Risk Management
A reasonably complete guide to project risk management.
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