Residual risk refers to the level of risk that remains after an organization has implemented all possible security controls and mitigation strategies. It represents the exposure that cannot be entirely eliminated, even with robust safeguards in place. This risk is an important consideration in cybersecurity risk management, as it helps organizations understand their true risk posture and make informed decisions about accepting, transferring, or further mitigating the remaining risk. Regular assessment of residual risk ensures that organizations remain vigilant and responsive to evolving threats and vulnerabilities.