Which term refers to the uncertainty of an organization’s ability to meet its long-term objectives due to external factors?

The term that refers to the uncertainty of an organization's ability to meet its long-term objectives due to external factors is strategic risk. Strategic risk encompasses a wide array of external influences that can affect an organization's overall direction and decision-making process. These factors may include changes in market conditions, regulatory environments, competitive landscapes, and other macroeconomic variables that can impact the organization’s ability to achieve its strategic goals.

Understanding strategic risk is crucial for organizations as it directly involves the potential for long-term planning and success. By identifying and assessing these external uncertainties, organizations can develop strategies to mitigate risks and seize opportunities, thus aligning their actions with their overarching objectives.

Other options, while related to various risk assessments, focus on different aspects. For instance, operational risk centers on internal processes, systems, and people, while financial risk pertains to the exposure of financial loss due to various financial factors. Compliance risk refers to the potential for legal penalties or financial forfeiture resulting from a failure to comply with applicable laws and regulations. Each of these categories does not specifically capture the external uncertainties related to long-term strategic objectives like strategic risk does.