Secondary losses originate from which type of stakeholder reaction?

Secondary losses arise from the reactions of external or secondary stakeholders. This group includes entities or individuals who are not directly involved in a project or organization but can still be affected by its outcomes or incidents, such as customers, suppliers, or community members.

When a disruption occurs, or when an organization faces a risk event, secondary stakeholders might respond in ways that can lead to additional losses. For example, if a company experiences a data breach, not only could it face immediate financial losses, but damage to its reputation (a secondary loss) can deter customers and harm relationships with suppliers or regulators, extending the impact beyond the direct stakeholders.

Understanding this distinction is crucial in risk assessment processes, as it highlights the need to consider the broader repercussions of risk events. Analyzing how secondary stakeholders might respond allows organizations to prepare for and potentially mitigate these secondary losses effectively.

The other options refer to different types of stakeholders but do not specifically encompass the reactions that lead to secondary losses in the same way.