Which term describes the risk associated with the use of information technology and digital data?

• A. Control
• B. Environmental risk
• C. Cyber and information security risk
• D. Credit risk

Answer: (C)

The risk described here is the one that arises from using information technology and digital data. Cyber and information security risk covers threats to information assets, systems, and networks—such as malware, hacking, data breaches, privacy violations, and service disruptions—and the vulnerabilities in processes or configurations that could be exploited. It encompasses protecting confidentiality, integrity, and availability of data and IT services, which is exactly what this risk category addresses.

The other terms don’t fit as well. A control is a safeguard intended to reduce risk, not the risk itself. Environmental risk relates to physical or environmental factors affecting operations, not specifically IT and data security. Credit risk concerns potential financial loss from borrowers or counterparties defaulting, which is outside the IT risk domain.