Residual risks

cvangeepuram

Hi,
is residual risk referring to the residual risk exposure of a risk, after applying a response strategy ?
As I see it, for avoided risks, the likelihood is made zero, so the residual risk exposure is zero. For all other inherent risks,
the risk exposure is > 0, we might be able to reduce it, but still its value could be > 0. Residaul risks sound like the set of risks with outstanding (positive) risk exposure...if the risk exposure is less than lower tolerance limit ,we move it to watch list...just wanted to correct my thinking if I am going in wrong direction...

Regards,
Chary