Residual risk refers to the remaining risk after implementing risk responses or controls. In this scenario, despite the policy requiring complex passwords and regular updates, some employees ' inability to comply increases the likelihood of password compromise. This non-compliance elevates the residual risk beyond acceptable levels. The risk manager should reassess the residual risk to determine its current status and evaluate whether additional controls or actions are necessary to mitigate the heightened threat. This reassessment ensures that the organization ' s risk management strategies remain effective and aligned with its security objectives.

PMI Risk Management Study Guide References:

The PMI-RMP Exam Preparation Study Guide defines residual risk as " the risk that remains after risk responses have been implemented, " highlighting the need for continuous monitoring and reassessment to address any changes in risk exposure.