What is residual risk?
Such a risk acceptance is generally in the case of residual risks, or we can say that the risk which is accepted by the investor after taking all the necessary steps is the residual risk. Risk Transfer Risk transfer is a risk-management mechanism that involves the transfer of future risks from one person to another.
Can a risk reduction practice expose a company to residual risk?
However, such a risk reduction practice may expose the Company to residual risk in the process itself. Consider a production and manufacturing company that has the list of procedures to be performed in the manufacturing line, which checks the risks involved at each stage of the process.
What is the residual risk of materials handling leases?
If the distribution of the loss is known, the residual risk is zero. An open-ended lease like the kind offered by leasing companies that are relatively new to the materials handling space, means the customer could be bearing the residual risk.