Inherent risk

Inherent risk, in Risk management, is an assessed level of raw or untreated risk; that is, the natural level of risk inherent in a process or activity without doing anything to reduce the likelihood or mitigate the severity of a mishap, or the amount of risk before the application of the risk reduction effects of controls.^[1]

See also

Inherent risk (accounting), particularly, the consideration of the probability of material misstatements in financial records

References

↑ Gregory Monahan (2008). Enterprise Risk Management: A Methodology for Achieving Strategic Objectives. John Wiley & Sons.

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