residual risk

The *risk remaining after the application of *risk management techniques and *internal controls. It is often impossible to eliminate risks entirely; but risks can be managed to levels that an organization’s managers deem to be acceptably low. The culture of an organization (its *risk appetite) tends to determine levels of acceptable residual risk. See also *net risk.

Auditor's dictionary. 2014.

Look at other dictionaries:

  • Residual risk — The residual risk is the risk or danger of an action or an event, 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… …   Wikipedia

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  • Residual Value — How much a fixed asset is worth at the end of its lease, or at the end of its useful life. If you lease a car for three years, its residual value is how much it is worth after three years. The residual value is determined by the bank that issues… …   Investment dictionary

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