Identifying residual risk is essential for which of the following reasons?

Identifying residual risk is essential because it helps in recognizing the effectiveness of security controls. Residual risk is the part of risk that remains after security measures have been implemented. By assessing this risk, organizations can evaluate how well their security controls are functioning and whether they are adequately mitigating threats. Understanding residual risk is crucial for decision-makers as it informs them about the potential vulnerabilities that still exist and aids in prioritizing further security improvements or risk management strategies.

In this context, it also serves as feedback for revisiting security policies and procedures, thereby fostering an environment of continuous improvement in the risk management process. This understanding ultimately assists in the ongoing effort to protect organizational assets and ensure compliance with relevant regulations.