A library board wonders if "risk" includes losing patron trust after a data mishap, not just money. What should the risk manager confirm?
Select an answer to reveal the explanation.
Short Explanation
Money is the easy meter to watch, but trust works like a library card — once it is canceled in someone's mind, borrowing stops. Corporate risk also covers people, information, and relationships. A data mishap that burns patron confidence is firmly in scope, even before the dollar line moves.
Full Explanation
MSI-framed corporate risk management treats losses broadly: financial impacts, employee harm, information compromise, and damaged stakeholder relationships all belong in scope. Reputation and trust effects after a data mishap are relationship and information losses, not optional extras that appear only when cash moves or a regulator cites the organization. Confirming that breadth keeps the board from narrowing the register to insurance-payable dollars alone.