Master the 2026 CRISC Challenge – Grab Your Risk Control Superpowers!

Question: 1 / 400

How is Inherent Risk defined?

Risk that includes all mitigation measures

Risk with partial controls in place

Risk without any controls

Inherent risk refers to the level of risk that exists in the absence of any controls or mitigation measures. This concept assumes that a risk exists solely based on the nature of the activity or process being evaluated, without considering any interventions that might reduce or manage that risk. Therefore, defining inherent risk as the risk without any controls captures the essence of what inherent risk means – it reflects the raw exposure to potential loss or negative outcome before any efforts to mitigate that risk are implemented.

In comparison to other definitions, those that involve partial controls or the inclusion of mitigation measures dilute the understanding of inherent risk, as they do not represent the unaltered state of risk. Similarly, identifying risk through historical data typically relates to assessing or quantifying risk, which is different from the fundamental definition of inherent risk itself.

Get further explanation with Examzify DeepDiveBeta

Risk identified through historical data

Next Question

Report this question

Download Certified in Risk and Information Systems Control (CRISC) Practice Test PDF Study Guide
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy