Residual Risk

From Open Risk Manual

Definition

Residual Risk denotes the risks remaining after a certain Risk Mitigation strategy has been pursued in the context of Risk Management. The level of risk remaining after all cost-effective actions have been taken to lessen the impact, probability and consequences of a specific risk or group of risks, subject to an organization's Risk Appetite.

The precise nature of residual risks depends on the type of both underlying risk and mitigation / hedging activity