What should an organization do after determining the residual risk?

After determining the residual risk, it is essential for an organization to validate that this risk is acceptable. Acceptability often hinges on the organization's risk appetite and the overall risk management framework in place. This step ensures that the organization has a clear understanding of the potential impacts of the residual risk on its goals and objectives, and that stakeholders are informed and in agreement with the level of risk that remains after all mitigating controls and strategies have been implemented.

By validating the acceptability of residual risk, the organization can make informed decisions about whether to implement additional controls, transfer risk through insurance or contractual agreements, or proceed based on a calculated acceptance.

The process of validating residual risk is crucial for ensuring proper governance and accountability, as it aligns the organization's risk management strategy with its business objectives and compliance requirements. This thorough assessment supports the organization's overall resilience and fosters a culture of risk awareness among employees and management.