How does your organization define Inherent Risk (precontrols, set of controls, or controls failing), and how do you determine and justify the likelihood and impact of each of your risks or threats? Relatedly, how do you see the difference between risk and threat?

Identification of risks is a first step and different technologies, tools, process and methods can be used for risk identification - Internet and external audit are best way to keep risk and threats under reasoable control. Here is the difference between risk and threat from Internet  - "

Risk: "Risk" is a broader concept that encompasses the entire spectrum of potential events or scenarios that could affect an organization's objectives or operations. It includes both threats and opportunities. Risks can be categorized into different types, such as strategic risks, operational risks, financial risks, and compliance risks.

Threat: A "threat" is a specific event or circumstance that has the potential to cause harm, loss, or disruption to an organization. Threats are a subset of risks, representing the negative or adverse side of the risk equation. Threats are often external events or conditions, like cyberattacks, natural disasters, or economic downturns, but they can also be internal, like data breaches resulting from employee actions."

organizations define inherent risk as the natural level of risk before controls are considered. They assess risks by evaluating the likelihood and impact of each risk, and this assessment is justified based on data and expert input. Risks encompass a wide range of scenarios, while threats specifically refer to potential events that could cause harm or disruption.

Risk: Risk is a broad concept that encompasses the potential for both positive and negative outcomes. It refers to any uncertain event or situation that may have an impact on objectives, whether it's an opportunity (positive risk) or a threat (negative risk).Threat: A threat specifically refers to a potential event or situation that can harm or negatively affect an organization's assets, operations, or objectives. Threats are typically associated with negative risks.In summary, organizations assess inherent risk before implementing controls, determine the likelihood and impact of risks or threats using various methods, and distinguish between risks (which can be positive or negative) and threats (specifically negative risks). The goal is to manage and mitigate risks to achieve business objectives effectively.