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][2] Another definition is that inherent risk is the current risk level given the existing set of controls, which may be incomplete or less than ideal, rather than an absence of any controls.[3][4]
Inherent risk is contrasted with residual risk, which is the amount of risk left after treatment and added security measures.
Inherent risk represents the amount of risk that exists in the absence of controls.
Inherent risk is current risk level given the existing set of controls rather than the hypothetical notion of an absence of any controls.