Question

Company management completes event identification and analyzes the risks. The company wishes to assess its risk after management's response to the risk. According to COSO, which of the following types of risk does this situation represent?

A. Detection risk.
B. Inherent risk.
C. Residual risk.
D. Event risk.
C. Residual risk.

Answer 1

Answer:

Residual risk

Explanation:

Is a type of risk whose threat(s) is not completely removed even after putting all control measures in place. It is calculated as:

Residual risk = inherent risk minus effect of risk control.