The _________ is determined by the aggregate residual risks combined with the direction of risk.

The risk profile is a comprehensive overview that reflects the aggregate residual risks and their direction, which helps organizations understand their overall risk exposure. It takes into account various facets of risk, including the likelihood of various risks occurring and the potential impact of those risks on the organization. By analyzing residual risks—those remaining after risk management strategies are applied—companies can effectively determine how these risks are positioned (either positively or negatively) with respect to their business objectives.

This concept emphasizes the importance of not only identifying the individual risks but also understanding how they combine and influence one another. A well-defined risk profile allows organizations to allocate resources effectively, prioritize risk management efforts, and align their strategies with their risk appetite. This understanding is foundational for making informed decisions about future activities and investments in risk management.

While risk analysis, risk strategy, and risk assessment serve important roles in the overall risk management process, they do not encapsulate the idea of an aggregate view of risks and their implications for the organization in the same comprehensive manner as the risk profile does.