Certified Governance Risk and Compliance (CGRC) Practice Exam 2025 – All-in-One Guide to Master Your Certification!

In Information Risk Management, identifying various categories of risk is crucial for establishing effective risk management strategies. The chosen answer, which indicates 'Event occurrence' as a type that is not recognized as a specific category of risk, is correct due to the nature of how risks are classified.

Human interaction, social status, and equipment malfunction are all directly tied to the various aspects that can create vulnerabilities in an organization. Human interaction encapsulates risks associated with human errors, negligence, or malicious actions, while social status might refer to risks linked to reputational impacts that can arise from societal perceptions or behavior. Equipment malfunction encompasses risks stemming from failures in technology or physical components that could disrupt operations and lead to data loss or breach.

In contrast, 'Event occurrence' is too broad and vague to be categorized as a specific risk type. It lacks the specificity to identify the source or type of risk, thereby rendering it less useful for risk management frameworks that require concrete categories to effectively assess and mitigate risks. This distinction helps organizations better allocate resources and strategies to defend against specific and tangible risks within their operational landscape.