Inherent Risk vs. Residual Risk: What’s the Difference?

**Executive summary:** This article explains inherent and residual risk in cybersecurity, defines both terms, outlines why each matters, describes methods to identify and calculate them (including the formula Residual Risk = Inherent Risks – Impact of Risk Controls), and recommends continuous monitoring and classification of residual risk for compliance and mitigation, highlighting SecurityScorecard as a monitoring solution.