What does "residual risk" refer to?

Residual risk refers to the remaining level of risk after all mitigation efforts and controls have been implemented. It acknowledges that while organizations take proactive steps to reduce risk through various strategies and measures, it is often impossible to completely eliminate all risks. This concept is crucial in risk management as it requires organizations to recognize and evaluate the risk that still exists despite their best efforts to mitigate it.

In the context of cybersecurity, after establishing security policies, implementing firewalls, and conducting training, there may still be vulnerabilities that could be exploited. Therefore, understanding residual risk is fundamental for organizations to prioritize their resources effectively and determine how to manage the remaining risk acceptably. This is why A is the accurate definition of residual risk — it reflects the ongoing challenges that organizations must continuously monitor and address.