Differentiate internal and external risks?

Internal risks are risks that originate from within the organization, such as employee errors, fraud, or system failures. These risks are typically under the control of the organization and can be managed through internal controls and processes.

External risks, on the other hand, are risks that originate from outside the organization and are beyond its control. These risks can include economic downturns, natural disasters, regulatory changes, or changes in market conditions. External risks are often unpredictable and can have a significant impact on the organization's operations and financial performance.