Abstract: Institutional risk is calculated by collecting information about the products and services offered by an institution and assigning a risk value to each product and service. Other aspects and components of an institution are also assigned risk values. The various risk values are calculated along with institutional controls that are in place to mitigate risk in order to determine an overall residual risk assessment for the entity. Forecasts can be made for an institution by adding new or subtracting current business activities and/or institutional controls and calculating an alternative overall residual risk assessment.