What does a risk exception refer to?

A risk exception refers specifically to a risk that arises from non-compliance with corporate policy. In many organizations, adherence to established policies is essential for maintaining operational integrity and minimizing vulnerabilities. When a situation occurs where these policies are not followed, it creates a risk that could lead to security breaches, financial loss, or reputational damage. Recognizing this as a "risk exception" highlights the need for the organization to address the non-compliance and take appropriate remedial actions to mitigate any potential impacts.

The concept emphasizes the importance of compliance in risk management frameworks. It serves as a reminder that even well-structured policies need to be enforced, and when deviations occur, they should be identified and managed effectively to maintain a secure environment.