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. 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.
Strategic Risk involves risks that affect the organization’s ability to achieve its goals and objectives. Inherent strategic risks could stem from changes in the business environment, competitive pressures, or shifts in consumer preferences.
