Which type of risk is associated with embezzlement?

Embezzlement is typically categorized as a security risk. This type of risk encompasses threats to an organization’s financial resources, particularly those that arise from the misuse or theft of funds by individuals within the organization. In cases of embezzlement, a trusted employee or manager misappropriates money for personal gain, which directly impacts the organization’s financial integrity and security.

Understanding security risks is crucial for organizations to implement effective controls and safeguards, such as auditing practices and internal controls, to minimize the potential for such fraudulent activities. It focuses on protecting assets and ensuring that trust in financial management processes is maintained.