What term describes risks that originate from within the organization?

Prepare for the CAST Project Management FG IV Test. Utilize flashcards and multiple choice questions, each with hints and explanations. Achieve success in your exam!

The correct term for risks that originate from within the organization is "internal risks." Internal risks are factors that can arise from the internal environment of the organization, such as processes, systems, people, or technology. These risks are often within the control of the organization, making them critical for project managers to identify and mitigate effectively.

Understanding internal risks is essential because they can significantly impact project outcomes. For instance, issues related to team dynamics, resource allocation, or operational inefficiencies are all examples of internal risks. Managing these risks typically involves implementing strategies that enhance internal processes and ensure that teams are well-equipped to handle challenges.

In contrast, external risks arise from outside the organization and can include factors like market fluctuations, regulatory changes, or natural disasters. Contingent risks are those that are dependent on other risks occurring, while predictable risks are those that can be foreseen and planned for. Recognizing the distinction between these types of risks and understanding that internal risks stem from within the organization is fundamental in effective risk management.

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