Causes of risk include all the following except:

According to ISO 31000:2018, a cause of risk is a "risk source," defined as an element that, alone or in combination, has the intrinsic potential to give rise to risk. Health, safety, environment, finance, and specific events like a chemical breakdown are all examples of risk sources that create uncertainty and can affect objectives. Conversely, insurance is a form of "risk treatment," which is a process to modify risk. Specifically, insurance is a risk-sharing technique used to transfer the financial consequences of a potential loss to another party. Therefore, it is a response to risk, not a cause of it.

A. Health, safety and environment factors are fundamental categories of risk sources that can lead to injury, regulatory penalties, and reputational damage.
B. Finance is a major category of risk sources, including elements like market volatility, credit default, or liquidity issues that directly impact financial objectives.
D. A chemical breakdown is a specific operational or technical event that is a direct source of safety, environmental, and financial risks.

1. ISO 31000:2018

Risk management — Guidelines.

Section 3.5: Defines "risk source" as an "element which

alone or in combination

has the intrinsic potential to give rise to risk." Options A

B

and D fall under this definition.

Section 3.8: Defines "risk treatment" as a "process to modify risk." Note 1 to this entry explicitly lists "sharing the risk (e.g. through contracts

buying insurance)" as a type of risk treatment.

2. Hopkin

P. (2018). Fundamentals of Risk Management: Understanding

Evaluating and Implementing Effective Risk Management (5th ed.). Kogan Page.

Chapter 1

Page 12: Discusses the ISO 31000 definition

clarifying that risk sources are the origins of risk.

Chapter 15

Page 269: Describes insurance as a primary mechanism for risk transfer (a form of risk treatment)

stating

"Risk transfer is the most common way of dealing with risks that have a low probability of occurrence but a high financial impact... The most obvious example of risk transfer is insurance."

3. Purdy

G. (2010). ISO 31000:2009—Setting a New Standard for Risk Management. Risk Analysis: An International Journal

30(6)

881-886. https://doi.org/10.1111/j.1539-6924.2010.01442.x

Page 884: This article explains the ISO 31000 process

clearly distinguishing the "risk assessment" phase (which includes identifying risk sources) from the "risk treatment" phase

where responses like risk sharing (e.g.

insurance) are selected and implemented.