CAS Practice Exam 2025 – Complete Study Guide

Exposures that interrupt operations can be categorized as external, internal, and project-specific risks due to the diverse nature of potential disruptions faced by an organization.

External risks refer to factors outside an organization's control, such as natural disasters, economic downturns, regulatory changes, and supply chain issues. These can significantly impact operations and are largely influenced by external environments.

Internal risks are those that stem from within the organization, such as operational inefficiencies, management decisions, employee errors, or technological failures. These factors can disrupt daily operations and are influenced by the internal processes and systems of the business.

Project-specific risks are associated with the unique challenges that arise during specific projects. These can include scope changes, resource availability, stakeholder engagement, and timeline constraints. The nature of project work often brings forth its own set of risks that can interrupt the regular flow of operations.

By recognizing that interruptions can occur due to a blend of these three types of risks, organizations can better prepare and strategize to mitigate their impact on operations. This comprehensive categorization helps in risk management and planning efforts to address potential disruptions effectively.