Residual Risk

Residual Risk is the risk remaining to an investment after all other risks have been eliminated, hedged, or otherwise accounted for. 

Residual Risk

Residual Risk is the risk remaining to an investment after all other risks have been eliminated, hedged, or otherwise accounted for. 

 


Explanation of Residual Risk

After a risk assessment, a residual risk may be known but not completely controllable, or, it may not be known. In either case, the residual risk is assumed by whoever owns the investment or the business process.


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