Which type of risk is associated with theft?

The type of risk that is associated with theft is classified as property risk. Property risk involves the potential for loss or damage to physical assets, which includes theft, vandalism, and natural disasters that may affect owned or rented property. When a theft occurs, it directly impacts the owner’s financial position by reducing the value of their property and can also lead to additional costs, such as replacing stolen items or enhancing security measures to prevent future incidents.

Liability risk and personal risk are not directly linked to theft. Liability risk relates to the potential for legal claims against an individual or business due to harm caused to another party or their property. Personal risk often deals with risks affecting an individual’s personal life, including health-related issues or loss of income, rather than the risks associated with tangible property. Strategic risk pertains to the potential threats that can affect an organization's ability to achieve its goals, often related to decision-making and overall business strategy rather than theft or property loss.