TPRM Risk Types

Question 1

Reputation Risk

Answer 1

A negative public view related to dissatisfied customers, interactions not consistent with institutional policies, inappropriate recommendations, security breaches resulting in the disclosure of customer information, and/or violations of law and regulations.

Question 2

Operational Risk

Answer 2

Results from inadequate or failed internal processes, people, and/or systems.

Question 3

Transaction Risk

Answer 3

Issues with service and/or product delivery, or a third party’s failure to
perform as expected by customers. An organization can also be exposed to a transaction risk through inadequate capacity, technological failure, human error, and fraud.

Question 4

Compliance Risk

Answer 4

Results from a violation of laws, rules, and regulations, or from noncompliance with internal policies or procedures.

Question 5

Cyber Risk

Answer 5

Results from the probability of exposure or loss of organizational data, due to a technical failure, event, or incident (to include a breach).

Question 6

Financial Risk

Answer 6

Results from a third party’s failure to meet, or align with, an organization’s monetary requirements and expectations

Question 7

Strategic Risk

Answer 7

Results from failing to align strategic goals to business objectives and/or
an activity that jeopardizes an organization’s strategic objectives.