GlossaryEN1 min readUpdated: Jun 12, 2026
residual risk
Residual risk exists in every supply chain: it is the risk that remains despite all implemented controls, safeguards, and mitigation measures.
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Source: https://www.investopedia.com/terms/r/residualrisk.asp
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Logistics Concept
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Residual risk exists in every supply chain: it is the risk that remains despite all implemented controls, safeguards, and mitigation measures. Even when a freight forwarder or logistics provider deploys safety protocols, insurance, or redundancies, unforeseen events such as natural disasters, market volatility, or technical failures cannot be entirely eliminated. Residual risk demands continuous monitoring and can be managed through contingency planning and regular strategy adjustments, but it is never zero.
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