Practice Quiz

Business Continuity Professional Exam Prep

Category - BCP Strategy

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Jerry was in the midst of assessing his risk for a project at a well-known real estate firm when the stock market collapsed, sending shockwaves throughout his company and his project. The market crashing can be classified as what type of risk:
  1. Foreseeable
  2. Internal
  3. Technical
  4. External
  5. Unimaginable
Explanation
Answer: d - Factors affecting the stock market would be considered external risk factors to this and most other companies.

Key Takeaway: Firms cannot possibly prepare for all unforeseen risks. However, external risk must always be considered, especially ones that might affect future cash flows.
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