CIMA P3 Syllabus A. Enterprise risk - Gross and net risks - Notes ^{3 / 10}

NET, OR RESIDUAL RISK is the risk remaining after actions have been taken to manage risks.

The level of net risk indicates how far the business believes that risks can be reduced. 

As part of their regular review of risks, managers should compare net risks with gross risks, the assessment of risks before the application of controls or management responses. 

This comparison will show how effective responses to risk have been.