What is the difference between internal risk rating and external risk rating?

Question

Accepted Answer

Internal risk rating is determined by the organization itself, while external risk rating is provided by external agencies or experts.

Internal risk rating is based on the organization's own assessment of risks and vulnerabilities.
External risk rating is provided by third-party agencies or experts who evaluate the organization's risk profile.
Internal risk rating considers factors specific to the organization, such as its internal controls, processes, and historical data.
External risk rating takes into account industry benchmarks, market conditions, and the overall economic environment.
Internal risk rating helps the organization identify and manage its own risks effectively.
External risk rating provides an independent perspective on the organization's risk profile and helps stakeholders make informed decisions.

Accepted Answer

External risks are risks over which a company has no control—where the only possible action is mitigation. An internal risk is one where the organization has the power, within the firm, to prevent the risk.

Accepted Answer

Internal risk is related to shortage of staff/ man power as well as software issue / infrastructure is not provided to that extant

As well as external risk related to market scenario

Political risk,economy problem slowdown or slag in market

Asked in Punjab National Bank

What is the difference between internal risk rating and external risk rating?

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