A company decides to offshore its customer relations department and makes the current staff train the new offshored staff. Which type of risk does the company need to mitigate?

This type of risk pertains to financial implications related to funding and investment decisions. Offshoring customer relations typically does not directly influence the company's cost of capital, as this involves factors like interest rates and investor expectations, rather than employee dynamics or organizational culture.

While offshoring could potentially impact innovation if the offshored team lacks familiarity with the company culture or processes, the immediate risk in this scenario is more about trust and morale. A decline in trust may indirectly affect innovation, but the primary concern is the trust deficit created by the changes.

Transaction costs involve the expenses incurred during the transfer of goods or services and are generally not directly tied to internal staff changes. Offshoring customer relations may lead to different operational costs, but these are not necessarily categorized as transaction costs in the context of staff training and morale.