How is residual risk defined in a risk assessment context?

Residual risk is defined as the risk that remains after security controls have been applied to mitigate or reduce the initial risk. In the context of risk assessments, once an organization identifies potential threats and vulnerabilities, it implements security measures to manage or reduce those risks. However, it is rarely possible to eliminate all risk completely due to several factors including new vulnerabilities emerging, changes in the threat landscape, or limitations in the effectiveness of the security controls. Therefore, the residual risk represents the level of risk that remains and must be acknowledged and managed by the organization.

Understanding residual risk is crucial for organizations to make informed decisions about risk tolerance, and it guides further actions that may be necessary to address the remaining vulnerabilities or to implement additional controls as needed. This concept reinforces the idea that risk management is an ongoing process rather than a one-time fix, as the dynamic nature of risks requires continuous monitoring and reassessment.