Jerry was in the midst of his assessing risk for his project at a well-known real estate firm when the stock market collapsed, sending shockwaves through his company and his project. The market crashing can be classified as what type of risk:
Explanation
Answer: d - Factors affecting the stock market would be considered external risk factors to this and most other companies.
Internal risk factors allude to those factors relating directly the project within the company such as staffing, resources, etc. Technical risk factors refer to those having to do with technology. Since the stock market crashing was not foreseeable, this wouldn’t be a possible answer (well, maybe some would argue that it was).
Key Take Away: Because project managers cannot possible prepare for all unforeseen risks (just by virtue of their nature), it’s imperative that they prepare for as many scenarios as possible to leave as little room as possible for procedural gaps.
