Risk Management Discussion Point

Risk Management Discussion Points

Risk Appetite

Risk appetite defines the quantity and nature of risk that organizations are willing to accept, as they evaluate the trade-offs between perfect security and unlimited accessibility.

The reasoned approach to risk is one that balances the expense against the possible losses if exploited.

Residual Risk

When vulnerabilities have been controlled as much as possible, there is often remaining risk that has not been completely removed, shifted, or planned for.

This remainder is called residual risk.

“Residual Risk is a combined function of (1) a threat less the effect of threat-reducing safeguards; (2) a vulnerability less the effect of vulnerability-reducing safeguards, and (3) an asset less the effect of asset value-reducing safeguards.”  

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