RISK AND OPPORTUNITY ANALYSIS : RESIDUAL RISK AND PLANNED RESIDUAL

[Former Member]

Hi all, anyone could explain me the difference between Residual Risk and Residual Risk Planned in the Analysis of a Risk?And why the mitigation action of a control (for example) affects only the residual risk planned and not the residual risk?

Thanks in advance.

Daniele.

[Former Member · Accepted solution]

Hi Daniele,

Inherent Risk: risk situation before any actions has been put in place nor executed.

Residual Risk: corresponds to today's risk situation

Residual Risk Planned: corresponds to where you will arrive when responses

                                                will be effective & 100% complete.

Mitigation actions will only have impact over residual risk if the linked response's effectiveness is partially or completely effective and completeness % is more than 0%.

Kind regards,

Pascal