Which term best describes the risk management strategy focusing on maintaining data integrity and confidentiality?

Study for the BAFT Certificate in Principles of Payments Test. Utilize flashcards and multiple-choice questions, with hints and explanations for each query. Prepare thoroughly for your exam!

The term that best describes the risk management strategy focusing on maintaining data integrity and confidentiality is information security. Information security encompasses the processes, policies, and technologies designed to protect sensitive data from unauthorized access, disclosure, alteration, and destruction. Maintaining data integrity ensures that the information is accurate and unaltered, while confidentiality refers to the protection of data from being accessed by unauthorized individuals.

When discussing operational risk, it generally pertains to the risks arising from internal processes, systems, people, or external events that can impact an organization’s operations. While it encompasses many aspects, including the potential for data breaches, it does not specifically focus on data integrity and confidentiality as a primary concern.

Compliance risk refers to the potential for violations of laws, regulations, or internal policies, which may lead to legal penalties or financial losses. While compliance may involve aspects of data protection, it is broader and not exclusively concerned with the integrity and confidentiality of data.

Credit risk involves the possibility of loss due to a borrower's default on a financial obligation. This type of risk is related to financial transactions and the ability of borrowers to repay loans, rather than any direct concern with data integrity or confidentiality.

Therefore, information security is the most precise term that encapsulates the risk management strategy of protecting

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