Joanna's organization's servers are hosted in a co-location facility located in a flood-prone area that is also vulnerable to hurricanes. What category of risk would BEST characterize the risks that Joanna and other customers are exposed to?

A multi-party risk pertains to risks that involve multiple organizations. Since several customers and organizations are involved, this constitutes an instance of multi-party risk. Unlike an internal risk that originates within an organization, this is an external risk. Legacy system risk pertains to a risk created by a system or process that is no longer maintained or updated. Intellectual property (IP) theft risk arises when proprietary information or trade secrets are at risk of being exposed or lost.