Which types of risk are included in the scope of risk management?

The types of risk included in the scope of risk management encompass a variety of elements that can impact an organization's ability to achieve its objectives. The identified risks reflect a broad spectrum relevant to operations and overall business health.

In this case, the focus on cyber risk, investment risk, and financial risk illustrates the importance of addressing risks that can directly influence the financial stability of an organization. Cyber risk pertains to potential threats to information systems and data breaches, which are critical in an increasingly digital world. Investment risk refers to possible losses resulting from poor investment decisions or market fluctuations, directly affecting profitability and financial positions. Financial risk broadly encompasses the potential of losing money due to various factors, including market volatility, credit risk, and operational inefficiencies.

While other choices present valid types of risks, this selection emphasizes the financial facets of risk management, making it relevant for organizations aiming to sustain their economic health in today’s complex landscape. Effective risk management incorporates these aspects, allowing businesses to strategize accordingly and mitigate potential adverse effects.