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Glossary › Residual Risk
What is Residual Risk?
Residual risk reflects the exposure that persists even after implementing safeguards or completing remediation. It accounts for limitations in controls, emerging threats, and operational realities. In TPRM, residual risk determines whether a vendor can operate within the organization’s risk appetite.
FAQs
Why does residual risk matter?
It shows the true remaining exposure.
Can residual risk be zero?
Rarely, because no control eliminates all risk.
Who approves residual risk?
Risk owners or governance committees.
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