Which term describes risks that arise from the internal environment of an organization?

Operational risks are those inherent to the internal environment of an organization. These risks originate from the internal processes, systems, and personnel that are part of an organization's operations. They can include risks related to human error, system failures, fraud, or inadequate processes that affect the organization's ability to produce and deliver products or services effectively.

Understanding operational risks is crucial for organizational resilience and maintaining efficiency, as they can significantly impact daily operations and overall performance. Organizations typically identify, assess, and manage operational risks to minimize their potential negative impact and enhance their operational continuity and effectiveness.

Furthermore, the other terms in the options refer to different categories of risk. External risks are related to factors outside the organization, systematic risks pertain to market-wide risks affecting the economy or financial markets, and market risks are linked specifically to fluctuations in market prices. Hence, operational risks stand out as risks originating from within the organization itself.