Risk Management 101 for IT Professionals Essential Concepts - Understanding Residual Risk

The video tutorial explains the concept of residual risk, which is the risk that remains after implementing risk mitigation or transference measures. It introduces the residual risk equation, which calculates residual risk as the inherent risk minus the impact of risk responses. The tutorial discusses various risk control measures, such as risk mitigation and transference, and emphasizes the importance of evaluating the level of residual risk that remains. It concludes with considerations for further reducing residual risk and encourages viewers to assess whether additional measures are needed.

What is residual risk?

• The risk that is transferred to another party

• The initial risk before any measures are applied

• The risk that is completely eliminated after mitigation

• The risk that remains after applying risk control measures

Which of the following is true about risk control measures?

• They increase the inherent risk

• They are unnecessary if inherent risk is low

• They can sometimes leave residual risk

• They always eliminate all inherent risk

What should be considered when applying risk control measures?

• Whether they are the most expensive option

• Whether they increase the inherent risk

• If the residual risk level is acceptable

• If they completely eliminate all risk

What is the purpose of the residual risk equation?

• To find the risk remaining after mitigation

• To determine the cost of risk control measures

• To assess the effectiveness of risk transference

• To calculate the total inherent risk

Why is it important to understand the residual risk diagram?

• To better understand the remaining risk after controls

• To identify areas where risk control measures are unnecessary

• To calculate the cost of risk mitigation

• To visualize the complete elimination of risk