Inherent Risk is the level of risk a vendor presents before any controls, safeguards, or mitigation measures are applied. It reflects the natural exposure associated with the vendor’s services, data access, operational impact, geographic footprint, and regulatory requirements. Inherent risk determines how deeply a vendor should be assessed, which questionnaires to use, and how frequently monitoring should occur. A strong inherent risk process ensures that high-impact vendors receive the appropriate level of scrutiny from the start.
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