Original Source:  Fair Institute by Rachel Slabotsky

“I recently had a conversation with clients around a risk analysis they conducted and noticed as they walked me through it that they seemed to get hung up on the terms “inherent risk” and “residual risk” and what inherent risk represented in that particular scenario.

They could not get comfortable with the current state of their control environment without having a firm grasp on the assessed inherent risk for that scenario. This stemmed from their experience in conducting risk assessments where the first step is to identify the inherent risk, then factor in controls to arrive at residual risk…”

Contributors: Open Source
Categories: Industry Articles, SIG U Resource
SRC Type: Risk Management, Sourcing Management, Third Party Management