What do residual risk self-assessments focus on?

Residual risk self-assessments focus specifically on the risks that remain after all risk management strategies and controls have been implemented to mitigate inherent risks. Inherent risks are the risks that exist before any controls or mitigation strategies are applied. By assessing residual risks, organizations can understand what potential threats and vulnerabilities still exist after their risk mitigation efforts.

The focus on residual risk is crucial because it allows organizations to identify any remaining exposure and to make informed decisions on whether to accept, transfer, or further mitigate those risks. This is particularly important in risk management processes, as it highlights the effectiveness of the controls and allows for the identification of areas that may require additional attention.

This approach does not necessarily involve a direct evaluation of inherent risk in the sense that the self-assessment is primarily concerned with what is left and not deeply analyzing the original sources of risk. By concentrating solely on the residual risk, organizations can prioritize their risk management strategies and allocate resources effectively to address the most pertinent issues.