The four types of risk
Risk level
I
Inherent
No controls
C
Current
With existing controls
T
Target
After treatment
↔ Residual risk = the gap between current and target
Inherent Risk
No controls in place
A theoretical baseline, at or near the maximum.
Current Risk
With existing controls
Your real starting point for treatment.
Target Risk
After planned treatment
Must sit at or below your acceptance threshold.
Residual Risk
The gap to close
Current minus target — the job of your plan.