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Which of the following best describes residual risks?

 

A. Risks that arise due to quality issues

B. None of the choices are correct

C. Risks that still remain after implementing a risk response

D. Risk that come about as a direct result of implementing a risk response

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Question added by Muhammad Farooq , QA-QC MANAGER , AL Bawani contracting co.
Date Posted: 2016/09/04
Firoz Khan
by Firoz Khan

Risk that remain even after implementing contols or mitigation are known as Residual Risk

Mukesh Choudhary
by Mukesh Choudhary , Manager Finance , Adam Sugar Mills Limited

Risks still remain after implementation of risk response

Musaveer Ahmed Hakeem
by Musaveer Ahmed Hakeem , Group Treasurer , Confidentials

It is the risk that is still there after the impact of the know risk control have been applied

 

Shahzad Kazi
by Shahzad Kazi , Chief Credit Officer , BECU

The first step in risk management is to identify the different types of risk present within a business or organization.  The second step is to design and implement risk mitigation strategies, policies, processes and controls.

At the end of the day any risk that cannot be mitgated or controlled is residual risk.  An example is that of a "Black Swan Event".  Another may be an unforeseen disaster.  

You cannot identify all risks and cannot mitigate all that have been identified.  There will always be some risks that remain and these are residual risks.

Jifry Issadeen
by Jifry Issadeen , Senior Accountant , Urban Utopia (Pvt) Ltd

Its a simple squestion and yes the asnwer is C

Imran Ahmed
by Imran Ahmed , Manager-Planning & Delay Analyst , Nesma United Industries (NUI) Saudi Arabia

The PMBOK Guide defines Residual Risks as "those risks which are expected to remain after the planned response of risk has been taken, as well as those that have been deliberately accepted"

By Defination: Option-C is answer i.e. Risks that still remain after implementing a risk response

micheal Twinomugisha
by micheal Twinomugisha , Security guard , National polystyrene packaging factory Dubai UAE

It is C (Risks that still remain after implementing a risk response)

Krishna   KHASANIS  PMP
by Krishna KHASANIS PMP , Project Manager-Electrical , Larsen & Toubro Ltd, P T & D (International)

Thanks for the invitation.

Cis the obivious answer. Risks that remain even after implementing risk response are known as ' Residual Risks ' .

Ghulam Farid
by Ghulam Farid , Contracts Officer , Abu Dhabi Company for Onshore Petroleum Operations (ADCO)

Option C seems ok.............

Ahmed Mahmoud El Rays
by Ahmed Mahmoud El Rays , Loss prevention manager , Amazon - Egypt

Residual risk is the threat that remains after all efforts to identify and eliminate risk have been made.