Residual risk

Residual risk

Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Residual Risk

Any risk remaining to an investment after all other risks have been eliminated, hedged, or otherwise accounted. For example, a residual risk to an international shipment may be the part that is not insured by the export credit agency. Some residual risks may not be known during risk analysis, and indeed may not be knowable.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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