After applying mitigations that reduce the likelihood of a risk’s impact, the next step is toassess the residual risk—the risk that remains after controls are implemented. This ensures the organization understands if the mitigation is sufficient or if further action is needed, aligning with risk management best practices.

Option A:Correct—residual risk assessment is the logical next step to evaluate the effectiveness of mitigations.

Option B:Updating the threat model might follow but isn’t immediate; residual risk comes first.

Option C:Moving to the next risk skips evaluating the current mitigation’s success.

Option D:Recalculating impact magnitude is part of residual risk assessment but isn’t the full process.