Inherent risk is the risk that exists in any action, before any precautions are taken. Think about this at the personal level. You can't leave your house without taking the risk of being hurt - by a falling meteor, a texting driver, or a rabid raccoon. Depending on where you live, the likelihood, or the chance that something might happen, will be different, but the risk is always there. That risk is inherent risk.
Residual risk:Here is how it works: first you have to identify the risks, and then you need to mitigate the risks you find unacceptable (i.e. treat them). Once you treat the risks, you won’t completely eliminate all the risks because it is simply not possible – therefore, some risks will remain at a certain level, and this is what residual risks are. The point is, the organization needs to know exactly whether the planned treatment is enough or not.
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