For example, the ISO 27001 standard to manage information security requires companies to monitor residual risk. Understanding residual risk is essential for regulatory compliance. So you need to decide the amount and type of residual risk you’re willing to accept. While the residual risk of hackers guessing the password would be low, the residual risk of employees using new passwords that vary only slightly from the old (or perhaps jotting them down on a post-it note) would be high. You enforce the policy by asking employees to change these passwords weekly. For example, suppose you implement a password policy that requires employees to use complex passwords. Residual risk refers to those risks that remain even after applying all the controls you intend to use. This includes all threats to an organization before the organization implements any countermeasures.įor example, in cybersecurity, an inherent risk might be the threat of data theft when the company uses no encryption or security in its web browsers or puts no access controls between a user and confidential data the company wants to protect. Inherent risk refers to the amount of risk that exists without any controls. Or, phrased another way: residual risk is risk that can affect your business even after taking all appropriate security measures. Residual risk is the risk that remains after your organization has implemented all the security controls, policies, and procedures you believe are appropriate to take. You must figure out how to identify residual risk in your risk assessment process. Those gaps can cost you dearly, measured in dollars and reputation. Ignoring residual risk can leave serious security gaps in your company’s risk management strategy. This makes it harder for companies to take proper precautions to address threats, since management teams might need to grasp the residual risk after implementing a suite of controls. Cyber risks can be challenging to understand, especially for people who are not risk management professionals.
0 Comments
Leave a Reply. |