Which type of authorization is typically required for risky operations?

Management authorization is necessary for risky operations because it ensures that the decision to perform such actions has been reviewed and approved by senior personnel with the appropriate authority. Risky operations often have significant impacts on the organization, including potential financial loss, security vulnerabilities, or compliance issues. By requiring management authorization, organizations can leverage expertise and oversight to assess the associated risks and make informed decisions regarding the operations.

Management's role in this context typically involves evaluating the potential consequences, ensuring that adequate controls or mitigation strategies are in place, and confirming that the operation aligns with the organization's overall strategy and risk tolerance. This layer of oversight is critical for maintaining governance and accountability within the organization, especially when the stakes are high.

In contrast, the other types of authorization may not carry the same level of scrutiny required for risky operations. Technology authorization might focus on the operational aspects of deploying technology, while administrative and customer authorizations may not necessarily involve the higher-level oversight needed when social, financial, or reputational risks are at play.