The risk that exists before management takes any steps to control the likelihood or impact of a risk is
A) Inherent risk
B) Residual risk
C) Risk appetite
D) Risk assessment

Question

Quizplus · Accepted Answer

Inherent risk is the risk that exists before any measures are taken to mitigate it. It is the risk that results from the nature of an activity or operation, and it cannot be eliminated entirely. It is the starting point for any risk management process.

The Risk That Exists Before Management Takes Any Steps to Control