Final answer:
The correct option is Operational Risk, which is linked to the potential failure in processes, systems, or controls, including IT systems. This contrasts with hazard risks, which involve natural or physical threats. The management of operational risks is vital in the context of both individual and organizational levels.
Step-by-step explanation:
The question deals with the identification of a type of risk that arises from people or a failure in processes, systems, or controls, which also include those involving information technology. This does not fall under hazard risk, which typically involves natural disasters or physical accidents, but rather it is considered an Operational Risk. Operational risks are associated with the day-to-day operations of an organization, including the risks arising from system failures, fraud, or other internal processes.
Instances such as massive unemployment or a country going to war represent economic risks, over which people have minimal control. Electrical shocks, on the other hand, fall under the category of hazard risks, which include physical threats from electrical sources. Another aspect of risk involves classifying people into risk groups for insurance purposes, where moral hazard and adverse selection are two major problems that arise from imperfect information.
Finally, the concept of asymmetric risk in decision making indicates the importance of mitigating catastrophic threats, a principle similar to purchasing insurance to alleviate the impact of low-probability yet severe events. The digital divide and technological dependencies underscore the importance of managing operational risks, as system failures can lead to significant consequences for both individuals and organizations.