What Is It?
Residual risk is the risk that remains even after applying mitigation strategies. It’s what you can’t fully eliminate but must monitor and manage.
Example in Action
A bank installs firewalls, encryption, and access controls to protect against cyberattacks. However, new hacking methods still pose some risk—that’s residual risk.
How to Handle It?
🔸 Insurance – Companies get cyber insurance for worst-case scenarios.
🔸 Backups – Keeping redundant systems ready if primary systems fail.
