Which term describes the probability of risk before any controls are applied?

The term that describes the probability of risk before any controls are applied is inherent risk. Inherent risk refers to the level of risk that exists naturally in a given environment or situation without any interventions or risk management strategies. It is an important aspect of risk assessment because it serves as the baseline against which further risk management efforts are evaluated.

Understanding inherent risk is crucial for organizations as they develop strategies to minimize risks. It enables them to identify areas in which they may be most vulnerable, thereby informing their decision-making processes when implementing controls or risk mitigation strategies. This foundational concept helps in recognizing that while risk can be managed and reduced, some level of inherent risk is always present due to the nature of various activities and their environments.

In contrast, residual risk refers to the level of risk that remains after controls have been applied. Mitigated risk and controlled risk are non-standard terms, typically used in specific contexts where the focus might be on risks that have been addressed in some fashion. However, inherent risk remains the key term for understanding the baseline probability of risk before any risk management efforts are made.