: Risks are diverse and arise from both external and internal sources.

Risks are diverse and arise from both external and internal sources. This is true because risks are uncertainties that can have positive or negative effects on an organization’s objectives. Risks can arise from various sources that are either outside or inside the organization’s control. External sources of risk include natural disasters, cyberattacks, market fluctuations, customer preferences, competition, regulation, or political instability. Internal sources of risk include human error, fraud, system failure, process inefficiency, organizational culture, or strategic decisions. Verified References: https://www.investopedia.com/terms/b/businessrisk.asp https://www.thebci.org/training-qualifications/good-practice-guidelines.html