Non-compliance with regulatory requirements can result in severe financial penalties, reputational damage, and legal consequences.
Why This is Correct:
Regulatory fines directly impact the organization’s financial health.
Non-compliance signifies a failure in governance oversight.
Why Other Options Are Incorrect:
A. Budget Reduction: A symptom, not the highest impact.
B. Decreased Awareness: Important but secondary in terms of impact.
C. Improper Use of Resources: Significant but does not surpass regulatory non-compliance fines.
References:
EC-Council prioritizes compliance as a critical metric of effective governance to avoid costly penalties and reputational harm.
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