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Dictionary by pitch.dog
Enterprise risk & controls · Core

Inherent risk

Also called: gross risk

ELI5

Risk before considering controls or mitigation.

Used in conversation

“The board will ask what happens if inherent risk moves outside tolerance.”

Pitch context

You will see “Inherent risk” in board papers, contracts, policies, risk registers and compliance reports when the discussion reaches enterprise risk & controls.

Why it matters: In enterprise risk & controls, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

When the words have to travel

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Sources & evidence · 3

Direct term-level sources and supporting source families.