Inherent risk

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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]

One of the main arguments against the use of inherent risk as a concept is the perceived difficulty in determining its level. Where the inherent risk can be assessed, it assists in identifying which controls are key.[2]

See also[edit]

References[edit]

  1. ^ Gregory Monahan (2008). Enterprise Risk Management: A Methodology for Achieving Strategic Objectives. John Wiley & Sons. 
  2. ^ Tattam, David. "Inherent Risk – Is it useful?". Protecht Risk Management Insights. Retrieved 2017-05-01.