What type of risk is characterized by factors originating outside an organization?

Externally-Derived Risk refers to risks that arise from factors outside an organization’s control. These can include threats from natural disasters, regulatory changes, economic shifts, or global political events, among others. Understanding these risks is crucial for organizations, as they can significantly impact operations, revenue, and strategic planning. Identifying and analyzing externally-derived risks allows organizations to develop appropriate strategies for mitigation or response, ensuring they are better prepared to handle unexpected events that could affect their business continuity and security.

Internally-Derived Risk, inherent risk, and residual risk all refer to different aspects of risk management but do not focus specifically on factors that originate outside the organization. Thus, they do not accurately capture the essence of risks that stem from external sources.