Definitions for residual risk

This page provides all possible meanings and translations of the word residual risk

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  1. residual risk(Noun)

    The risk left over after safeguards (mitigation strategies) have been implemented.

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  1. Residual risk

    The residual risk is the risk or danger of an action or an event, a method or a process that, although being abreast with science, still conceives these dangers, even if all theoretically possible safety measures would be applied. The formula to calculate residual risk is x where inherent risk is. In the economic context, residual means “the quantity left over at the end of a process; a remainder”. In the property rights model it is the shareholder that holds the residual risk and therefore the residual profit.


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"residual risk." STANDS4 LLC, 2015. Web. 27 Apr. 2015. < risk>.

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