Which of the following is an example of an external risk?

Market fluctuations are indeed an example of an external risk because they arise from factors outside the organization and can impact a project's success. These fluctuations could include changes in the economy, shifts in consumer demand, or variations in currency values, which are largely beyond the control of the organization.

This type of risk can have significant implications for project budgets, timelines, and overall feasibility, making it essential for project managers to be aware of and prepare for these external influences.

In contrast, equipment failure, employee turnover, and technical malfunctions are typically classified as internal risks. These issues can often be managed or mitigated at the organizational level since they relate to operational processes, workforce management, and technology maintenance. Understanding the difference between external and internal risks helps project managers develop more effective risk management strategies.