Understanding Residual Risk

residual risk.

The blank can be filled with the phrase "residual risk".

Residual risk refers to the risk that remains after new or enhanced controls have been implemented to mitigate a risk. This remaining risk can arise due to several factors such as the controls being ineffective, the controls being improperly implemented or operated, or the controls not addressing all aspects of the risk.

Residual risk is an essential concept in risk management as it helps to identify the potential risks that are still present in the system or organization, even after implementing various risk mitigation strategies. Residual risk is often calculated after the implementation of controls, and the risk management team can use this information to determine whether additional controls are needed to reduce the residual risk to an acceptable level.

It is crucial to understand the residual risk to ensure that the overall risk to an organization is kept within acceptable limits. If residual risks are not identified and addressed, they can pose a significant threat to the organization's operations, assets, and reputation. Hence, residual risk management is an essential aspect of information security management.