TraceRiskUncategorizedResidual Risk

Residual Risk

Residual Risk is the amount of risk left over [unmitigated] after consistently and effectively applying cost-beneficial controls to minimize the probability and impact of adverse events or conditions. Residual Risk has a direct and inextricable relationship with Risk Appetite so some risk is always going to be acceptable in the pursuit of achieving operational, compliance and, most especially, financial objectives (i.e., ROA, ROI and ROE).