Residual risk vs Unmanageable risk

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Tomico
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Joined: Thu May 18, 2006 5:02 pm
Location: Naples, FL

Residual risk vs Unmanageable risk

Post by Tomico » Tue Jul 23, 2019 4:42 pm

What is the difference between residual risk vs unmanageable risk?

Intaver Support
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Joined: Wed Nov 09, 2005 9:55 am

Re: Residual risk vs Unmanageable risk

Post by Intaver Support » Tue Jul 23, 2019 4:45 pm

This is a question we do get from people who have sat in on our webinars or read some of our blog posts as they seem to describe the same thing, but they do describe slightly different types of risk.

Residual risk is the risk that will still remain after risk management activities or plans have been put in place. Within our system, residual risk equals the Post-Mitigated risks that you see in the risk register.

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Unmanageable risk is residual risk + uncertainty. By definition, uncertainty is caused by natural variance that occurs in all processes and, unlike risk events, cannot be managed - only accounted for using margin and contingency.

Therefore to fully account for all existing risk that your project faces, we recommend that your risk model includes both uncertainty and residual risks from risk events that is not being managed.
Intaver Support Team
Intaver Institute Inc.
Home of Project Risk Management and Project Risk Analysis software RiskyProject
www.intaver.com

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