What does the term “residual risk” refer to?

Residual risk refers to the level of risk that remains after security measures and controls have been implemented to mitigate potential threats. This concept is crucial in risk management, as it acknowledges that no security measure can eliminate all risks completely.

By understanding residual risk, organizations can make informed decisions about additional controls that may be needed or accept the remaining risk as part of their operational landscape. It also facilitates continuous improvement, as regular assessments of residual risk can help identify new vulnerabilities or changes in the environment that may require further action.

In contrast, the other options focus on different aspects of risk management. The first option refers to the initial risk level, which does not consider any mitigation efforts. The second option addresses the likelihood of threats but does not specifically pertain to the remaining risk after controls are in place. Lastly, non-compliance risk is a distinct area, emphasizing the consequences of failing to meet regulatory or standard requirements, rather than the risk remaining after security measures.