# residual risk

*Last updated: 2026-06-26*

> Once a freight forwarder or logistics provider has put all planned controls, insurance cover, and redundancies in place, some exposure inevitably remains: that is residual risk.

Once a freight forwarder or logistics provider has put all planned controls, insurance cover, and redundancies in place, some exposure inevitably remains: that is residual risk. It refers to the portion of a risk that persists after all mitigation measures have been fully applied—whether due to natural disasters, geopolitical disruptions, or technical failures beyond operational control. In supply chain risk management, residual risk is treated as an unavoidable constant; the key question is whether it is consciously accepted, transferred through additional insurance, or buffered by contingency plans. It should not be confused with inherent risk, which describes the baseline exposure before any measures are taken. In any rigorous risk audit, residual risk is explicitly identified and documented.

**Source:** [https://www.investopedia.com/terms/r/residualrisk.asp](https://www.investopedia.com/terms/r/residualrisk.asp)

## Quick Facts

| Property | Value |
|---|---|
| Term | residual risk |
| Language | EN |
| Word count | 117 |
| Last updated | 2026-06-26 |
| Source | https://www.investopedia.com/terms/r/residualrisk.asp |

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