Residual Risk

D.

Residual risk refers to the level of risk that remains after security controls have been implemented. In other words, it is the level of risk that an organization is willing to accept and manage.

Let's analyze each option and determine which one correctly describes residual risk:

Option A: Residual Risk = Threats x Vulnerability x Asset Gap x Control Gap This option is not correct. The "Asset Gap" term is not commonly used in the context of residual risk, and it is unclear what it refers to.

Option B: Residual Risk = Threats x Exploit x Asset Value x Control Gap This option is not correct either. While the concept of an "Exploit" can be relevant when assessing risk, it is not a common factor used in calculating residual risk.

Option C: Residual Risk = Threats x Exploit x Asset Value x Control Gap This option is the same as Option B and is therefore not correct.

Option D: Residual Risk = Threats x Vulnerability x Asset Value x Control Gap This option is the correct answer. It includes the four main factors that are commonly used to calculate residual risk:

• Threats: the potential events or actions that can harm an asset
• Vulnerability: weaknesses or gaps in the security controls that can be exploited by a threat
• Asset Value: the value or importance of the asset that is at risk
• Control Gap: the difference between the actual effectiveness of the security controls and the desired level of effectiveness

By multiplying these four factors, we can calculate the level of residual risk for a given scenario.