what does residual risk entail
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 âthe quantity left over at the end of a process; a remainderâ. In the property rights model it is the shareholder that holds the residual risk and therefore the residual profit.he 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.