Which of the following costs is NOT typically considered a cost of risk?

In the context of risk management, a cost of risk refers to all the expenses related to managing and mitigating risks that an organization faces. This can include direct costs such as insurance premiums and retained losses as well as indirect costs like the costs of preventive measures.

Payroll and property tax are considered operational costs associated with running a business rather than costs arising specifically from risk management activities. They do not directly pertain to the risks an organization may face or the costs incurred in managing those risks. In contrast, insurance premiums (which provide financial protection against specific risks), inventory and shipping costs (which can be affected by risks related to supply chain disruptions), and retained losses (the costs incurred when an organization has to cover losses that insurance does not) are all directly tied to managing or being affected by risks.

Therefore, payroll and property tax stand apart as typical operational expenses that do not fall into the category of costs of risk.