Secondary risks in project management are risks that arise directly from implementing a risk response. These risks are not present initially but become apparent after addressing primary risks. If not managed properly, they can impact the project’s objectives.
According to the PMBOK Guide, “Secondary risks are those risks that arise as a direct result of implementing a risk response.”
Effective project management requires identifying, assessing, and managing secondary risks to avoid unforeseen issues impacting project objectives.
Secondary risks are identified risks. If any identified risk occurs, you will use the contingency plan and implement the fallback plan if the contingency plan fails. You will use the contingency reserve to manage secondary risks, as these are identified risks. Management reserves are for unidentified risks.
How to Manage Secondary Risk?
Secondary risks should be identified when planning responses to primary risks.
After identifying secondary risks, you will evaluate them like the primary ones. If the secondary risks require a response, you will develop them. Otherwise, you will keep them on the watchlist. You will continuously monitor the project to find secondary risks throughout the project lifecycle.
Adjust the project plan to respond effectively and train team members to recognize and manage secondary risks.
Examples of Secondary Risk?
Suppose the primary risk identified is the delays due to adverse weather conditions. To mitigate this risk, you decide to use weather-resistant materials and fast-track a few activities by working extended hours.
A secondary risk from this response is worker fatigue due to extended work hours, which could lead to a higher risk of accidents and reduced productivity. Additionally, the higher cost of weather-resistant materials could strain the project budget, creating financial risks that were not initially anticipated.
Another example is when you excavated a trench to stop animals. However, pedestrians may fall into the trench. This is an example of secondary risk.
Summary
Secondary risks emerge from responses to primary risks and require identification, assessment, and developing responses. By continuously monitoring and adjusting project plans, you can manage secondary risks and prevent them from jeopardizing project success.
This topic is important from a PMP and PMI-RMP exam point of view.
I am Mohammad Fahad Usmani, B.E. PMP, PMI-RMP. I have been blogging on project management topics since 2011. To date, thousands of professionals have passed the PMP exam using my resources.
