Correct Answer - Option 1 : Technological risk
External Risk Factors:
External risks often include economic events that arise from outside the corporate structure.
External events that lead to external risk cannot be controlled by a company or cannot be forecasted with a high level of reliability.
Following are the types of external risks include economic factors, natural factors, and political factors
1. Economic Risk: Economic risk includes changes in market conditions.
2. Natural Risk: Natural risk factors include natural disasters (such as earthquakes, floods, etc)
3. Political Risk: Political risk is comprised of changes in the political environment or governmental policy that relate to financial affairs. Changes in import and export laws, tariffs, taxes, and other regulations all may affect a business negatively.
4. Technological Risk: This faces obstacles to growth performance due to the lack of technological mastery, lack of human resources, no focus on business, and impartial government policies.
