Crucial Exams

ISC2 Governance, Risk and Compliance (CGRC) Practice Question

During a risk assessment for a new payroll system, you classify the system's inherent risk as high because no security safeguards have been considered yet. After controls are implemented and tested, you must report the system's residual risk. Which statement best distinguishes residual risk from inherent risk?

  • Residual risk represents potential impact before any threat exposure, while inherent risk describes what is left after controls fail.

  • Residual risk is equal to the organization's risk tolerance threshold, while inherent risk is the system's actual exposure level.

  • Residual risk excludes consideration of vulnerabilities, whereas inherent risk fully accounts for them.

  • Residual risk is the level remaining after applying and validating security controls, whereas inherent risk is the level present if no controls are in place.

ISC2 Governance, Risk and Compliance (CGRC)
System Compliance
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