Which term describes the total residual risk after considering all controls?

The term that describes the total residual risk after considering all controls is known as acceptable risk. This concept refers to the level of risk that an organization is willing to accept after implementing all necessary controls and safeguards to mitigate potential threats. Acceptable risk is a critical aspect of risk management because it helps organizations determine the balance between risk and reward. It acknowledges that while risks can be reduced through controls, it is impractical or impossible to eliminate all risks entirely. Therefore, once controls are in place, the organization evaluates which remaining level of risk is tolerable in the context of their objectives and risk appetite.

Inherent risk, exposure risk, and control risk are different concepts. Inherent risk refers to the level of risk that exists before any controls are implemented, while exposure risk pertains to the risk associated with particular assets or activities. Control risk, on the other hand, represents the risk that not all controls will mitigate the risks as intended. Each of these terms plays a role in risk assessment and management, but only acceptable risk specifically addresses the residual risk after all controls have been considered.