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residual risk
4 Examples of Residual Risk John Spacey, updated on
1. Risk AvoidanceA business decides to avoid the risk of developing a new technology because the project has many risks. The residual risk is that a competitor will develop the technology instead and the business will become less competitive.2. Risk ReductionAn airline reduces the risk of an accident by improving maintenance procedures. Residual risks remain in the process including a chance of human error such as skipping steps in the procedure.3. Risk TransferA homeowner transfers the risk of flood damages to their home by getting flood insurance. Residual risks include the insurance deducible amount and the chance that the insurance company will go bankrupt as the result of a large scale flood and fail to pay.4. Risk AcceptanceWhen a risk is accepted, the entire risk becomes a residual risk. For example, an investor may accept the risk that a stock will go down because they predict that the potential rewards of the investment outweigh the risks.RiskThis is the complete list of articles we have written about risk.If you enjoyed this page, please consider bookmarking Simplicable.
Business RisksA list of common business risks.Risk TreatmentThe five things that can be done about risk.Risk Management Effectiveness
A metric for measuring risk management.
Positive RiskThe potential that you'll achieve too much of a good thing.Dread Risk
Any risk that people have a strong aversion too.
Risk TakingThe definition of risk taking with examples.Risk ExamplesA list of risk examples by type.Risk Probability vs Risk ImpactThe two main factors in modeling a risk.Calculated RiskA definition of calculated risk with an example.Relative Risk
How to calculate relative risk with examples.
Project RiskA list of common project risks.Project RiskA list of common project risks.Project StakeholderA list of common project stakeholders.Risk vs Issue
The difference between a risk and an issue.
Secondary Risk
The definition of secondary risk with examples.
Risk Register
A guide to creating a risk register with an example.
Risk Perception
A definition of risk perception with examples.
ImplementationThe common types of implementation.Project Risk Management
A reasonably complete guide to project risk management.
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