Residual risk
From Wikipedia, the free encyclopedia
The residual risk is the danger of an action, 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 (scientifically conceivable measures).
In the economic context, residual means “The quantity left over at the end of a process; a remainder” (dictionary.com)
In the property rights model it is the shareholder that holds the residual risk and therefore the residual profit.
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