What is residual risk?

Residual risk refers to the amount of risk that remains after mitigation strategies have been applied to reduce the overall risk to an acceptable level. In the context of risk management, organizations implement various controls and measures to lower risks associated with their operations, assets, or processes. However, it is often not possible to eliminate all risk completely. Therefore, the risk that still exists after these protective measures are in place is known as residual risk. This concept is crucial for decision-making in security management, as it helps organizations understand what level of risk they are still exposed to and aids in planning for additional safeguards or responses if needed.

Understanding residual risk is essential for effective risk assessment and management, as it allows organizations to continually monitor and evaluate their security posture and readiness against potential threats and vulnerabilities.