Inherent risk refers to the exposure or possibility of an adverse outcome arising in an activity or environment, assuming no controls are in place to mitigate it. This risk exists independently of any action by the organization and considers both internal and external risk factors in their natural, uncontrolled state.
References: Institute of Internal Auditors (IIA) Glossary and Standards.

A chief audit executive failing to perform a risk assessment prior to preparing the audit plan demonstrates nonconformance with the Standards. According to IIA standards, specifically Standard 2010 - Planning, a risk assessment must inform the audit plan, ensuring that resources are appropriately directed towards areas of higher risk. References: IIA Standard 2010: Planning, which mandates the requirement for risk assessments in audit planning.