Explanation/Reference:
Explanation:
The best strategy for risk management is to reduce risk to an acceptable level, as this will take into account the organization's appetite for risk and the fact that it would not be practical to eliminate all risk.
Achieving balance between risk and organizational goals is not always practical. Policy development must consider organizational risks as well as business objectives. It may be prudent to ensure that management understands and accepts risks that it is not willing to mitigate, but that is a practice and is not sufficient to l>e considered a strategy.

Recovery time objective (RTO) is the length of time from the moment of an interruption until the time the process must be functioning at a service level sufficient to limit financial and operational impacts to an acceptable level. Maximum tolerable outage (MTO) is the maximum time for which an organization can operate in a reduced mode. Recovery point objectives (RPOs) relate to the age of the data required for recovery. Services delivery objectives (SDOs) are the levels of service required in reduced mode.

Explanation
Residual risk is the remaining risk after all security controls have been implemented. It is important to measure the residual risk of an organization in order to determine the effectiveness of the security program and to justify continued investment in the program. A reduction in residual risk is an indication that the security program is effective and that continued investment is warranted.

Section: INCIDENT MANAGEMENT AND RESPONSE