What type of risk involves the likelihood of a data breach?

The correct choice highlights the concept of information risk, which is directly related to the potential threats and vulnerabilities that can lead to unauthorized access or exposure of data. Information risk focuses on the confidentiality, integrity, and availability of data, making it pivotal in understanding the likelihood of a data breach occurring.

When considering a data breach, the risk centers on how information is managed, stored, and transferred within an organization. Factors influencing this risk include the effectiveness of security measures, employee training on data handling, and the organization’s overall data governance practices. The higher the likelihood of these factors failing, the greater the information risk and the potential for a data breach.

In contrast, operational risk refers to the potential losses stemming from inadequate or failed internal processes, people, and systems, not specifically tied to data breaches or information management. Compliance risk relates to the possibility of legal penalties or sanctions due to non-compliance with regulations, which may encompass data protection but is not solely focused on the risk of a breach itself. Market risk is concerned with the potential financial losses due to adverse movements in market prices, which has no direct correlation with data breaches. Thus, the most appropriate label for the risk of a data breach would indeed be information risk.