Ace the HRCI Exam 2025 – Rock Your HR Certification Journey!

The correct answer is indeed associated with security risks. Embezzlement represents a significant breach of trust and involves the unlawful taking of funds or property by an individual in a position of authority or trust. This fraudulent activity directly impacts the security of the organization’s financial assets, making it a clear example of security risk.

When embezzlement occurs, it not only poses a direct financial threat but can also undermine the overall integrity of the organization and its operations. Companies must implement strong internal controls and security measures to prevent such acts, protect their resources, and maintain organizational trust.

While legal risks may be involved due to the potential for criminal prosecution and lawsuits resulting from embezzlement, the primary concern in this context is the security of the company's assets. Safety and health risks typically relate to physical well-being in the workplace, while workplace privacy risks focus on the handling of employee information and data. In this specific case, the key risk associated with embezzlement is best categorized under security.