Which term refers to external factors that could harm the business?

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Threats are external factors that could harm a business. They come from outside the organization and include things like new competitors entering the market, changes in regulations or trade policies, economic downturns, rising supplier costs, or shifts in consumer preferences that reduce demand. Because these are outside the company’s control, the focus is on recognizing and preparing for them through risk assessment, contingency planning, and monitoring market signals. In contrast, opportunities are external factors that could benefit the business by opening new markets or growth potential, while internal activities like performance appraisal and progress review relate to evaluating and developing employees, not external threats.