Nick has initiated the risk assessment process for the organization and has not yet started implementing any controls. What is the risk that his organization is exposed to?

Inherent risk refers to the risk that an organization is exposed to before implementing any controls. Therefore, before addressing the risks that the organization faces, Nick must first assess and manage these inherent risks. On the other hand, residual risk is the risk that persists after implementing controls. The theft of intellectual property (IP), such as algorithms, formulas, and processes, is an example of IP risk, while multiparty risk is a risk that affects more than one group, company, or individual.