What can be a consequence of non-compliance with regulatory requirements?

Non-compliance with regulatory requirements can lead to legal penalties and fines, which is a significant consequence for organizations. Regulatory requirements are established to ensure that businesses operate within the law, maintain safety and integrity, and protect consumer rights. When a company fails to adhere to these regulations, it can face various repercussions imposed by regulatory bodies.

These repercussions can include financial penalties which can be substantial, and they may even lead to further legal actions such as litigation or loss of licenses necessary for operation. This situation can also lead to a tarnished reputation, potential loss of business, or increased scrutiny from regulators in the future.

In contrast, the other choices—such as increased employee satisfaction, enhanced brand image, and reduced operational costs—are typically positive outcomes resulting from compliant practices and successful operations rather than consequences of failing to comply with regulatory mandates. Non-compliance generally has negative ramifications rather than the benefits suggested by those options.