High-Tech Yuga

Residual risk is the level of risk that remains after all possible measures have been taken to mitigate or eliminate a particular risk. It is the risk that an event will still occur despite the implementation of risk management controls or strategies. Residual risk example in banking: Inability to clear debt Risk of a loan applicant losing their job Guarantor's refusal or delay to pay Here are some steps organizations can take to address residual risk: Identify requirements: Determine relevant governance, risk, and compliance requirements. Evaluate controls: Assess the strengths and weaknesses of the organization's control framework. Acknowledge risks: Recognize existing risks. Define risk appetite : Determine the organization's risk tolerance level. Implement recovery strategies: Conduct recovery exercises that are realistic and rigorous. Transfer risk: Shift the potential loss from an adverse outcome to a third party, such as through purchasing insurance. Accept risk: ...