Final answer:
The failure of a purchased component to perform as expected is known as Product risk, which directly affects the quality and reputation of the final product in a business.
Step-by-step explanation:
The risk that is related to the failure of a purchased component to perform as expected is known as Product risk. When components or products do not function as intended or meet the users' expectations, leading to a potential negative impact on the business using them, this is referred to as product risk. It's a particular concern in manufacturing and production environments where the quality and reliability of purchased components can directly affect the performance and reputation of the final product.