- Residual risk
The residual risk is the
risk ordanger of an action or anevent , a method or a (technical) process that, although being abreast with science, still conceives these dangers, even if all theoretically possible safety measures would be applied (scientifically conceivable measures).The formula to calculate residual risk is (inherent risk) x (control risk) where inherent risk is (
threat s ×vulnerability ).In the economic context, residual means “the quantity left over at the end of a process; a remainder” (dictionary.com).
In the property rights model it is the shareholder that holds the residual risk and thereforethe
residual profit .ee also
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risk analysis External links
* [http://www.economist.com/research/Economics/alphabetic.cfm?LETTER=R#RESIDUAL%20RISK Economist.com]
* [http://www.euronuclear.org/info/encyclopedia/r/residual-risk.htm Euronuclear.org]
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