ERM glossary

Gross vs net risk

الخطر الإجمالي مقابل الصافي الخطر قبل الضوابط (إجمالي) مقابل بعدها (صافٍ) — مرادف للكامن والمتبقي.

Gross risk and net risk are alternative names for inherent risk and residual risk: gross is exposure before controls, net is exposure after them.

The terminology is common in financial services, but the concept is identical — the difference between the two measures how much your controls reduce exposure.

Related terms

Going deeper: Inherent vs residual risk, with worked examples shows the scoring arithmetic in full.

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