What is meant by "residual risk"?

Residual risk refers to the amount of risk that remains after an organization has implemented security measures and controls designed to mitigate potential threats and vulnerabilities. Even with the best security practices in place, it is understood that some level of risk will always be present due to factors such as human error, technological limitations, or ever-evolving threat landscapes.

Understanding residual risk is crucial for effective risk management because it helps organizations recognize that no system is completely secure. This awareness allows managers to make informed decisions regarding risk acceptance, transfer, or additional mitigation strategies. It is a fundamental concept in both cybersecurity and risk management, as it emphasizes the need for continuous evaluation and adjustment of security measures in response to changing conditions and emerging threats.