The chance that uncertain future events outside the direct control of the organization could cause monetary, productivity, profit margin, or market share losses.

• A. External Risk
• B. Customer Relationship Management
• C. Empowerment
• D. Derived requirements

Answer: (A)

External risk refers to the chance that uncertain future events outside the organization’s direct control could cause losses in monetary terms, productivity, profit margins, or market share. It covers events in the external environment—economic shifts, regulatory changes, competitive moves, supply chain disruptions, or natural disasters—that can impact performance despite internal efforts. The other terms describe different ideas: Customer Relationship Management focuses on managing interactions with customers, Empowerment is about giving employees the authority to act, and Derived requirements are requirements that stem from translating needs into specifications. Because this scenario specifically describes risks arising from outside factors that can affect financial and performance metrics, it aligns with external risk.