What is residual risk?

Residual risk refers to the level of risk that remains after an organization has implemented various risk management measures and controls. In this context, it specifically pertains to the exposure that persists despite taking steps to mitigate inherent risks, such as through the adoption of security controls or other strategies to reduce vulnerabilities. Understanding residual risk is critical for organizations, as it helps them recognize the limitations of their risk management efforts and prepare for potential threats that could still impact their operations.

The correct choice emphasizes the concept that even after investing in mitigative measures or controls, there will still be some level of risk that the organization must acknowledge and manage. This insight is foundational in risk assessment practices, allowing for better strategic decision-making regarding risk appetite and resource allocation.

The other options do not accurately define residual risk. The reference to cybersecurity threats does not capture the essence of residual risk, which is more about the remaining risk after controls are in place. The mention of insurers focuses on risk assessment for insurance purposes, rather than on the management of residual risk within an organization. Lastly, the discussion of data backups and operational plans touches on specific aspects of organizational resilience rather than the broader concern of residual risk itself.