How do "inherent risks" and "residual risks" differ in risk assessment?

  • Inherent is accepted; Residual is unmanaged
  • Inherent is mitigated; Residual is accepted
  • Inherent is past; Residual is future
  • Inherent is unmanaged; Residual is after controls
"Inherent risks" are the risks that exist in the absence of any control or action to address them. It's the natural level of risk that exists. "Residual risks" are the remaining risks after controls and actions have been applied to mitigate the inherent risks.
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