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A malicious actor has breached the server of a major credit card company resulting in access to sensitive data such as customer accounts, names, and addresses. The attack has completely disrupted business operations. What type of risk has occurred?Select answer from the options belowStrategic RiskCyber RiskFinancial RIskOperational Ris

Question

A malicious actor has breached the server of a major credit card company resulting in access to sensitive data such as customer accounts, names, and addresses. The attack has completely disrupted business operations. What type of risk has occurred?Select answer from the options belowStrategic RiskCyber RiskFinancial RIskOperational Ris

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Solution

The type of risk that has occurred in this scenario is Cyber Risk. This is because the event involves a breach of digital security, leading to unauthorized access to sensitive data. Cyber risks are associated with any risks that come from the potential that a malicious entity will exploit vulnerabilities in a system, network, or software. In this case, the malicious actor has exploited vulnerabilities in the credit card company's server, leading to a breach of customer data.

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