Failure of hardware or software, along with malicious code, falls under which category of risks?

The correct answer is technical risks. This category encompasses issues related to hardware failures, software malfunctions, and threats from malicious code, such as viruses or malware. Technical risks arise from the technological systems and processes in use, which can be compromised, fail, or operate incorrectly.

Understanding this classification is significant because it helps organizations focus on mitigating risks associated with the systems they utilize. For instance, when considering security measures, businesses need to implement strategies for safeguarding against not only physical threats but also vulnerabilities in software and hardware that could be exploited by malicious actors.

While physical risks involve tangible threats to devices and infrastructure, human errors pertain to mistakes made by users, and environmental risks involve natural disasters or other external factors affecting operations. Technical risks, therefore, form a distinct category focused specifically on the interplay between technology, its functionality, and potential vulnerabilities.