A failed IT project that poses a significant risk to an enterprise, manifesting as lost market share, failure to seize new opportunities or other adverse impacts on customers, shareholders and staff.

• A. Operational risk
• B. Threat
• C. Project risk
• D. Strategic risk

Answer: (C)

When evaluating risk types, a failed IT project that can hurt market position and stakeholder value is best described as project risk. This risk arises from the project’s own execution and outcomes—whether it meets its objectives, stays on schedule, and stays within budget—and the resulting adverse effects on the enterprise. Operational risk focuses on ongoing processes, systems, or people in day-to-day operations. Strategic risk deals with long-term aims and external factors affecting the organization’s direction. A threat is a potential source of harm, not a risk category tied to a specific project. So the scenario fits project risk because the adverse enterprise impacts stem from the project’s failure to deliver.