What is one consequence of failing to identify and treat unacceptable risks?

Failing to identify and treat unacceptable risks can lead to substantial negative outcomes, one of which is the potential for major organizational failures. An organization that neglects to manage risks effectively exposes itself to vulnerabilities that could result in serious operational disruptions, financial losses, legal challenges, and damage to its reputation.

When risks go unaddressed, they can manifest in unexpected ways, leading to incidents such as data breaches, compliance violations, or operational failures. These issues can compromise the organization's stability and long-term viability, resulting in a failure to meet business objectives or to maintain a competitive position in the market. The consequences of these failures can be severe, making it critical for organizations to proactively identify and mitigate risks to ensure resilience and sustainability.