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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.

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.



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