What type of risk is associated with insider threats?

Insider threats primarily relate to operational risk because they directly impact an organization's day-to-day functioning and processes. Operational risk encompasses the potential for loss resulting from inadequate or failed internal processes, people, or systems. When insiders, such as employees or contractors, intentionally or unintentionally misuse their access to confidential data or systems, it can disrupt operations, lead to financial losses, or compromise sensitive information.

Managing insider threats requires a focus on organizational processes, employee training, and monitoring behaviors to minimize operational disruptions. By understanding that insider threats can stem from human error or malicious intent, organizations can develop robust strategies to protect against these risks, thereby ensuring their operational integrity.

While financial, technical, and reputational risks may also be consequences of insider threats, the core of the risk is rooted in operational vulnerabilities. For instance, a breach of operational security by an insider could lead to technical failures and subsequently damage the organization's reputation and financial standing, but these are secondary effects resulting from the failure of operational controls.