Senior Professional in Human Resources (SPHR) Certification Practice Exam

Which risk type is primarily associated with financial operations and practices such as embezzling?

1. Legal

2. Safety and health

3. Security

4. Workplace privacy

The correct answer is: Security

The risk type primarily associated with financial operations and practices such as embezzling is security. Embezzlement involves the misappropriation of funds or property entrusted to an individual's care, typically perpetrated by employees or executives within an organization. This kind of financial mismanagement falls under security risks because it relates directly to the safeguarding of an organization's assets and the integrity of its financial practices. Security risks encompass a range of threats that could involve unauthorized access to financial information, fraudulent activities, and any actions that could compromise the financial stability of the organization. As such, it highlights the importance of implementing robust internal controls, monitoring systems, and auditing processes designed to protect against financial misconduct. Options like legal, safety and health, and workplace privacy involve other aspects of risk management that do not specifically relate to financial operations in the context of embezzlement. Legal risks focus on the potential for lawsuits and non-compliance with regulations, safety and health risks pertain to physical safety measures and employee well-being, while workplace privacy concerns deal with how personal information of employees is handled. These areas, while important, do not directly address the financial operations aspect tied to embezzlement.