What type of risk is posed by individuals within an organization?

The type of risk posed by individuals within an organization is classified as an insider threat. This refers to the potential harm that can arise from employees or contractors who may misuse their access to organizational resources, intentionally or unintentionally, to cause damage or facilitate unauthorized access to sensitive information. Insider threats can emerge from malicious intent, such as stealing trade secrets or sabotaging operations, as well as from negligent behaviors, like mishandling sensitive data or failing to follow security protocols.

Understanding insider threats is crucial for organizations because these risks often bypass traditional security measures, which are primarily designed to defend against external threats. Individual employees, by virtue of their position and access, can pose significant risks that may not be detectable if proper monitoring and preventive measures are not in place.

Operational risk, while related to the broader scope of risks that an organization faces in daily operations, primarily focuses on internal processes, people, or systems failing, rather than the specific threat posed by the individuals themselves. Similarly, external threats typically refer to risks that originate from outside the organization, like cyber-attacks, hackers, or foreign espionage, while market risk pertains to potential losses due to changes in market conditions.