Final answer:
Residual risk is the amount of uncertainty that remains after all risk management efforts have been exhausted.
Step-by-step explanation:
The amount of uncertainty that remains after all risk management efforts have been exhausted is known as residual risk. This concept is critical in assessing the effectiveness of risk management strategies. In any practical scenario, some level of risk will always remain, as it's impossible to account for and mitigate all possible uncertain events.
In quantitative terms, when calculating uncertainties in science and engineering, for instance, the uncertainty in any measurement or calculation is usually given as a percent uncertainty. If the uncertainties in the measurements used in these calculations are small (a few percent or less), we can simply add these percent uncertainties together. For example, if a floor's length is measured to be 4.00 m with a 2% uncertainty and the width is 3.00 m with a 1% uncertainty, the area calculated would be 12.0 m² with a combined uncertainty of 3%.