What types of risk should a district consider in its risk management program?

• A. Financial risk, operational risk, legal/compliance risk, property/casualty, cyber risk, and reputation risk.
• B. Only financial risk.
• C. Political risk from international markets.
• D. Weather risk only.

Answer: (B)

The main idea here is understanding what a district’s risk management program should primarily protect against. Financial risk is the focus because it directly affects the district’s ability to fund operations, meet obligations, and maintain stability. When financial health is safeguarded, the district has a solid foundation to address other risks, and many non-financial risks are typically handled through separate processes or broader governance efforts. The other options suggest including risks that are either outside the basic scope of a single risk-management program or would require additional, specialized programs. So prioritizing financial risk keeps the program focused on preserving the district’s solvency and operational continuity, which is why this choice is the best fit among the options.