inherent risk



The probability of loss arising out of circumstances or existing in an environment, in the absence of any action to control or modify the circumstances.

Use inherent risk in a sentence

  • I realized that there was an inherent risk in letting my son join the company without and qualifications at all.

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  • The inherent risk meant that no matter how well we performed we could still experience an immense loss in the business.

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  • Many projects will have a certain inherent risk and you will need to judge if the rewards will outweigh it.

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