Which of the following examples of project risks involves an external vendor failing to deliver?

The correct choice focuses on contract risk, which specifically pertains to the obligations and expectations set within a contractual agreement with external parties, such as vendors. When a project relies on an external vendor to provide resources, services, or products, any failure on their part to fulfill these contractual obligations can significantly impact the project's success. This may involve delays, quality issues, or complete non-delivery of services, all of which filter down to create risk factors in project timelines, budgeting, and overall resource allocation.

Contract risk is unique because it highlights the vulnerability of a project to third-party performance, emphasizing the importance of strong vendor management and clear contractual terms to mitigate such risks. In a scenario where a vendor fails to deliver, the repercussions can cascade through various aspects of project management, underscoring the significance of managing and assessing contractual relationships.

The other types of risks, such as resource risk, budget risk, and integration risk, touch on internal project challenges. Resource risk typically relates to the availability and competency of internal resources rather than external partners. Budget risk usually concerns financial uncertainties and cost overruns within the project itself, while integration risk focuses on the challenges of aligning different components of the project, often related to internal structures or processes. These distinctions clarify why contract risk