Overall residual risk should be determined based on what criteria?

Determining overall residual risk is focused on identifying the greatest residual risk present in a situation. This approach allows for an effective prioritization of resources and efforts to mitigate risk within an organization. By assessing the greatest residual risk, decision-makers can focus on the most significant threats that could impact operations or safety.

This criterion emphasizes the need to understand which risks have the highest potential to cause harm and thus should be the focal point for management actions and strategic planning. Evaluating the highest residual risks ensures that comprehensive measures are undertaken to reduce vulnerability and enhance resilience, ultimately safeguarding personnel, assets, and mission continuity.

In this context, the concept of overall residual risk as the greatest risk aligns with best practices in risk management, where the goal is to minimize exposure to the maximum threat rather than focusing on averages or lesser threats that may not warrant the same level of attention or resources.