Certified Governance Risk and Compliance (CGRC) Practice Exam 2025 - Free CGRC Practice Questions and Study Guide

Residual risks represent the level of risk that remains after an organization has applied all known security measures to manage and mitigate potential threats. Even after the implementation of various safeguards, it is unlikely that all risks can be completely eliminated; some degree of risk will persist due to factors such as evolving threats, unexpected vulnerabilities, or the inherent imperfections in security controls.

Understanding residual risk is crucial for organizations as it helps in assessing the effectiveness of their security strategies and making informed decisions regarding risk acceptance, risk transfer, or further investment in additional security measures. By identifying these residual risks, organizations can prioritize their risk management and determine the risk appetite, ultimately leading to more robust governance and compliance practices.

In contrast, the other options refer to different aspects of risk assessment that do not accurately capture the definition of residual risk. Identifying residual risks enables organizations to focus on ongoing monitoring and improvement of their security posture.