Project Management Answers

What two factors combine to determine inherent risk?

Q: What two factors combine to determine inherent risk?


Q: Which two elements work together to define inherent risk?

  • Damage and mitigation
  • Probability and impact
  • Probability and mitigation
  • Damage and impact

Explanation: Within the realm of risk management, the term “inherent risk” is a notion that describes the degree of risk that is present in a scenario or process without taking into consideration any measures to mitigate the risk. The assessment of the inherent risk that is linked with a certain risk occurrence is based on many basic components, including probability and effect. While the term “impact” refers to the possible consequences or severity of a risk if it materializes, “probability” refers to the chance that a risk will occur. Additionally, the combination of these two elements contributes to the determination of the total inherent risk level.

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