What are the two approaches to entity scoping?

The correct choice identifies "Strategic" as one of the approaches to entity scoping. In the context of risk management and compliance, a strategic approach focuses on aligning entity scoping with the organization's overall goals and objectives. It involves assessing the risk landscape to determine which entities are critical to achieving strategic outcomes. By taking this route, organizations can ensure that their risk management efforts are directly supporting their mission, allocating resources efficiently, and prioritizing risks that may impact strategic goals.

In contrast, the other options, while important in their own rights, do not directly represent an approach to entity scoping in the same strategic alignment context. Financial considerations typically focus on budgetary impacts and economic implications, while technical aspects emphasize the technologies and systems in place for compliance and risk management. Operational scoping relates to the day-to-day functioning and processes but doesn't inherently contain the high-level strategic alignment that is characteristic of the strategic approach.