What can happen if a risk is marked as Retired?

When a risk is marked as Retired, it signifies that the organization has decided that the risk is no longer relevant or applicable to the current business environment or regulatory requirements. As such, it will not influence future assessments or the risk posture of the organization. This allows organizations to maintain a clearer focus on active risks that require attention, without the clutter of outdated or irrelevant risks impacting decision-making and resource allocation.

Retiring a risk is essentially a way to manage the risk portfolio effectively while still keeping a record of the retired risks for future reference, should there be a need to revisit them. This ensures that the historical data is preserved, but it distinguishes them from active risks that could pose current challenges.

While it is possible to reactivate retired risks if the situation changes, this would not be a standard outcome of marking a risk as retired. The risk does not get deleted; instead, its status changes to reflect that it is no longer active but still exists in the system for historical purposes. Approval processes for marking a risk as retired may vary depending on organizational policies, but this is not a mandatory outcome of the action itself.