RISK CLASSIFICATIONAI GOVERNANCE & RISK

Residual Risk

Residual risk is the risk remaining after controls are applied.

WHY IT MATTERS

Governance decisions should be based on controlled risk, not only inherent risk.

ENTERPRISE EXAMPLE

Human approval and read-only tool scope reduce the residual risk of an operations agent.

GOVERNANCE DECISION

Who accepts the remaining risk after controls?

REMEMBERControls reduce risk; accountable owners accept what remains.
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