ARL Logo
Risky Thinking
On Risk Management, Business Continuity, and Security
24 April, 2017
Do your staff know what to do in an emergency?
With Plan424 they will.

Inherent Risk (Definition)

  1. A risk which it is impossible to manage or transfer away is said to be an inherent risk.
  2. The risk that exists when no controls have been put in place.

The second definition is used in financial auditing, where it refers to the risk of a material misstatement of facts prior to (or excluding the possible effects of) any internal controls. With the ISO standardization of risk management, its use in business continuity is becoming more frequent.

See Also: Residual Risk.

You are welcome to use these definitions for any purpose provided that an acknowledgement is made
to www.riskythinking.com and (if you're using HTML) you provide a link back to this site.

[ Back to Risk Glossary ]

Risky Thinking Newsletter

Are you responsible for Business Continuity, Disaster Recovery, or Risk Management in your organization? Then you may wish to receive a free subscription to the the monthly Risky Thinking Newsletter. It contains news, opinions and articles of interest to people working in these areas.

View a sample issue, or click here to subscribe.

Recent articles have included:

On a forum somewhere in cyberspace, a poster lamented attending a lecture on business continuity. Her impression was that it was just backup. It isn't, but why might she have been given the wrong impression? Read more...

© Albion Research Ltd. 2017