What belongs in the risk section of the annual report?

• A. Only financial risks.
• B. A description of all risks without any corrective actions.
• C. Risks from external sources only.
• D. Identified risks and corresponding corrective actions.

Answer: (D)

Identifying and addressing risk in the annual report means showing what could go wrong and what the agency is doing about it. The best choice includes both the risks that have been identified and the corrective actions tied to them, along with who is responsible and any timelines. This demonstrates that the agency is actively managing risk, not just listing problems. It also covers a range of risk areas—financial, operational, regulatory, safety, and external factors relevant to the agency’s mission—so readers can see how each risk is being mitigated.

Other options don’t fit because listing only financial risks omits other important areas the agency must manage; describing all risks without any corrective actions doesn’t show how risks are controlled or monitored; and focusing on risks from external sources only ignores internal risks and the controls put in place to address them.