Risk Categorization by Source: Internal vs External Risks

Correct Answer: Changes in government regulatory requirements

Changes in government regulatory requirements is the correct answer as external risks are those that originate from factors outside the organization's control. External risks typically include: - Government regulations and policy changes - Market conditions - Economic factors - Weather events - Political situations The other options are all internal risks because: - Staff turnover in the project management office is an organizational internal risk related to human resources - Technical issues with internal software systems are operational risks under the organization's control - Internal process delays due to restructuring are organizational risks that the company manages internally The key distinction is that external risks originate from sources outside the organization's sphere of influence, while internal risks emerge from within the organization itself.

Correct Answer: Staff turnover coinciding with regulatory changes

Staff turnover coinciding with regulatory changes is the best example of combined internal and external risks because: Internal Risk Component: - Staff turnover is an internal organizational risk that affects operations, knowledge retention, and service delivery External Risk Component: - Regulatory changes represent external factors beyond the organization's control Combined Impact: - The simultaneous occurrence creates a compounded risk scenario where the organization must manage personnel changes while adapting to new regulations Why other options are incorrect: - Government policies affecting multiple facilities is purely an external risk - Equipment maintenance and staff training overlap is purely internal risk management - Market competition affecting enrollment is primarily an external market force

Correct Answer: Internal risks originate from within the organization and can be influenced by management decisions

In PMI-RMP risk management, internal risks originate from within the organization and fall under management's sphere of influence through decisions, policies, and organizational processes. This is a fundamental characteristic of internal risk sources. The other options are incorrect because: External risks are actually harder to control than internal risks since they originate from outside the organization and are subject to factors beyond the organization's control. Market patterns and industry standards can be unpredictable. The statement about internal risks always having higher impact is incorrect because impact levels depend on specific circumstances and risk characteristics, not on whether they are internal or external. Using the same response strategies for both internal and external risks is incorrect because these risk types often require different approaches due to their distinct characteristics and the varying levels of control the organization has over them.