Why might it be important to keep external org-wide default settings private?

Maintaining tighter control over data visibility is crucial in a Salesforce Community Cloud environment, particularly when dealing with external organizations. By keeping external org-wide default settings private, a business can set specific access levels and view permissions that prevent unauthorized access to sensitive information. This approach allows organizations to tailor the visibility of data according to the specific needs of different user groups, ensuring that only those who absolutely need to access certain information can do so.

For example, if an internal team is collaborating with external partners, keeping the data private allows the organization to selectively share only the relevant information necessary for collaboration, while protecting more sensitive internal data from being exposed. This balance of promoting collaboration while safeguarding sensitive information is key to effective data management and maintaining trust between organizations.

The other options do not align with the best practices of data security and privacy in a community setting. Open sharing, broader access across all licenses, and enhancing collaboration without considering data sensitivity can compromise the integrity and security of a company's data.