What is residual risk?

Residual risk refers to the remaining level of risk that exists after security controls and mitigation strategies have been implemented. Even after taking steps to reduce risk, there may still be some degree of risk that cannot be completely eliminated due to various factors such as limitations of controls, the dynamic nature of threats, or inherent vulnerabilities within the system or process.

This concept is crucial for ensuring that organizations recognize that while they can greatly mitigate risks, they cannot eliminate them entirely. Identifying residual risk helps teams understand what level of risk they still face and allows for better decision-making regarding risk management and resource allocation.

In contrast, the total risk before any controls are applied represents the initial assessment of potential dangers, while the idea of completely eliminating risk ignores the reality that some level of risk is always present. The perceived risk by team members focuses on individual or team perceptions rather than actual risk levels, missing the objective assessment of remaining vulnerabilities after mitigation efforts have been made.