While outsourcing can have significant benefits, there are also several potential risks. What risks are associated with outsourcing?

While loss of innovation is valid, the mention of loss of tax protection and higher transaction costs does not directly relate to the core risks of outsourcing. Tax protection is typically not a direct consequence of outsourcing, and while transaction costs can fluctuate, they do not inherently represent a risk tied to the outsourcing process itself.

Loss of organizational trust is indeed a risk associated with outsourcing; however, loss of property is not a common risk directly linked to outsourcing. Instead, concerns typically revolve around control and intellectual property rather than physical property. Higher transaction costs, while possible, do not encapsulate the primary risks inherent in outsourcing arrangements.

While loss of control is a relevant risk, the inclusion of loss of property and tax protection does not align with the primary concerns of outsourcing. The risks do not typically involve physical property loss or taxation issues, making this choice less applicable to the context of outsourcing.