Question

What is secondary risk?

Risk that is deemed lower in priority
Risk events that closely follow primary events
Risk events that occur as a result of primary risk occurrence
Risk created by a risk management tactic

Answer 1

Secondary risk is an indirect risk event that happens as a result of a primary risk occurrence. It is important in risk management to consider these subsequent risks that may have significant consequences such as secondary pollutants in the environment or secondary infections in health.

Step-by-step explanation:

Understanding Secondary Risk

Secondary risk is a risk event that occurs as a result of the occurrence of a primary risk. It is not directly caused by the initial event, but rather it is a subsequent result that has its own consequences. For example, if a company is hit by a natural disaster (primary risk), the interruption of supply chain operations might be a secondary risk associated with it. Similarly, taking a risk management action can also create secondary risks. If a company over-insures against a certain type of risk, the unnecessary cost could be considered a secondary risk.

In environmental science, secondary risk can be seen when primary pollutants undergo reactions in the environment to form secondary pollutants, which are new contaminants. In health, a secondary infection can occur after a primary infection has weakened the body's immune defenses.

The concept of secondary risk highlights the importance of considering not only the immediate effects of a risk event but also the cascade of potential further risks that can arise as an indirect consequence.