Need help on Risk Definition

Hi everyone,

Need soem help.

Can anyone point me to the definition of the risks (Known, Unknown,  Known Unknown, ...)?

Thank you

 

 

admin's picture

Known risks are self explainatory. - Like Risk of lower quality due to less experienced staff


Unknown risks are the ones which you cannot articulate since you dont know what the risk is. You can only keep some money aside for unknowns.


Known Unknown are the risks where future unknowns (uncertainties) are known at this point of time. Same as known risks.

Thank you for your response. And as I understand there are no uknown unknown risks or known known, is that correct?

 

couple more about the risks.

Residual vs secondary.

 

Secondary risk, is the risk that comes (is identified) after implementing mitigation plan for the primary risk and mitigation (action plan) needs to be in place (if it passes the risk list and is not entered into the watchlist ue to it's probability/impact. Is that true?

 

Residula risk, is the risk, that stays "active" even after the mitigation plan is executed, and there's nothing else is left except to accept it. Residual risk can be identified only during the execution. During the planning phase there will be no residual risks and only later during the execution risk might become a residual one. No planning is required for the residual risk. Is that correct?