Question

Which is an example of a company experiencing external risk ?

Answer 1

An example of a company experiencing external risk is Boeing during the 737 MAX crisis. This situation arose when two fatal crashes involving the aircraft resulted from issues related to a flight control system. The external risks included regulatory changes, public perception, and the impact on the airline industry due to safety concerns. The company faced significant challenges, including grounding its fleet, loss of orders, legal battles, and reputational damage, all of which were driven by factors outside of its direct control. This illustrates how external risks can broadly impact a company's performance and operations.