Inherent Risk vs Residual Risk.

#worklifecyber #tpr #thirdparty #cybersecurity #workingmom
Inherent risk and residual risk are terms used in risk management and assessment. They represent different stages of risk analysis in relation to a specific event or process. Here's an explanation of each along with examples:
Inherent Risk:
Inherent risk is the level of risk associated with a specific event, process, or activity before any risk mitigation measures or controls are applied.
It represents the natural or inherent level of risk that exists without considering any actions taken to reduce it.
Inherent risk is often assessed in terms of its impact and likelihood.
Example: In a software development project, the inherent risk might be that there is a high likelihood of encountering coding errors due to the complexity of the project, and if these errors occur, they could have a significant impact on the project timeline and budget.
Residual Risk:
Residual risk is the level of risk that remains after risk mitigation measures or controls have been put in place to reduce the inherent risk.
It represents the remaining risk exposure that an organization or project faces despite efforts to minimize it.
Residual risk is also assessed in terms of its impact and likelihood.
Example: Continuing with the software development project, after implementing code reviews, automated testing, and other quality assurance measures, the residual risk might be that there is still a moderate likelihood of coding errors, but their impact has been reduced from significant to minor due to these controls.
In summary, inherent risk is the initial risk level without any mitigation efforts, while residual risk is the risk that remains after implementing risk-reduction measures. Organizations use these concepts to make informed decisions about how to manage and prioritize risks effectively.

[@vback4238]

Best Explanation!!

[@marwansuliman5487]

Thank you for your explanation

[@worklifecyber]

My pleasure

[@maryarmah4336]

Thanks for this video!!!

[@FatmataSesay-f9p]

Thank u ma ...am really happy for your explanation and examples 😊becaus i so stress out to understand all everything u make it very simple for me it exactly the topic my lecture gave me to do presentation up.but with your explanation i have understand now thank you ma❤

[@NanaW-bq7vo]

She's back🎉

[@nwadigouche4456]

Thanks for taking ti
me to explain the difference. I always understand concepts better after watching your videos

[@worklifecyber]

Glad I can help. And thank you for watching

[@misspaula8290]

2nd videos I’m watching and I’m loving everything, thanks

[@worklifecyber]

Yay! Thank you!

[@JoanBadoh]

thanks so much for taking out time out of your busy schedule to guide us

[@worklifecyber]

Any time!

[@banenyanaramashala7656]

Thank you for the insights, I love how you broke it down. I have a question ,so can we say inherent risk will always be higher than residual risk? Based on the fact that despite the controls being put in place, residual can still be rated medium or high but never higher than the inherent. I hope I'm making sense. I'm asking this in connection to rating controls on an RMP, regulatory management plan. Thanks in advance

[@kayodecelinemary7667]

Thanks so much for deep explanation.

[@stylezpinero7416]

Thank You for the Breakdown. Much Appreciated. More Videos PLEASE....

[@germainkone9029]

Nice job.

[@lovelynigwe8188]

She’s back yay 😀 ❤

[@justgrateful]

Omg she is back. Welcome I'm so happy you are back

[@faroukbrimah7280]

Hey, welcome back !!! I would love to connect with you. Thanks for the videos !

[@mjybeex6016]

Thank you so much for your help with your videos and the explanations. Recently got a job offer. I would give anything to be able to have an actual conversation with you about what to expect on this journey....

[@worklifecyber]

Oh dear. Now seeing this. But I bet you broke a leg. And settling in just fine

[@timothyadeniran405]

Can a residual risk become a High risk?