What type of risk is associated with whether the organization can adapt to new system requirements?

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 type of risk associated with whether the organization can adapt to new system requirements is classified as organizational risk. This type of risk involves the capacity of an organization to effectively manage change and implement new processes, technologies, or systems.

When an organization introduces new systems or technology, it must ensure that its people, culture, and processes can adapt accordingly. If an organization struggles with this adaptation, it may experience disruptions in operations, resistance from employees, or an inability to realize the full benefits of the new system. This highlights the importance of not just focusing on the technical aspects of a system change but also on how the organization as a whole is prepared to embrace and utilize that change.

In contrast, development risk typically pertains to the technical challenges faced during the creation of the system, market risk relates to external factors impacting the demand or performance of a product, and financial risk is concerned with the monetary aspects of an investment or project. These do not directly address the organization's ability to adapt to new requirements.

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