Can the organization make the changes required to implement a new system? This is an example of____________________risk.

Study for the Information Technology Applications 203C (ITA203C) FE Test. Utilize flashcards and multiple-choice questions, each with hints and explanations. Prepare effectively for your exam!

The correct answer is organizational risk because it pertains to the ability of an organization to adapt to and implement significant changes, such as the introduction of a new system. Organizational risk involves factors related to the internal processes, culture, structure, and overall readiness of an organization to embrace changes. If the organization lacks the necessary culture, resources, training, or leadership support to effectively implement a new system, it could face challenges in achieving its objectives.

In the context of system implementation, assessing organizational readiness is crucial. If the changes required are too great or the organizational structure cannot support them, the likelihood of a successful implementation diminishes. This understanding highlights the importance of evaluating an organization's capacity to handle change when considering the introduction of new technologies or systems.

The other options focus on different aspects. Development risk generally relates to the technical and operational challenges involved in creating and deploying a system. Market risk pertains to the external factors that may affect the viability of a system in the marketplace, such as competition or demand shifts. Financial risk involves concerns regarding the funding, budgeting, or financial implications of the project. Each of these aspects plays a role in the broader project risk landscape but does not specifically address the organizational capacity to implement changes effectively.

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