What is one potential outcome of not adequately managing information risk?

Not adequately managing information risk can lead to significant consequences for an organization, particularly in terms of financial loss or reputational damage. When information risks are ignored or inadequately addressed, sensitive data may be exposed or compromised, leading to breaches. Such incidents can result in costly recovery processes, regulatory fines, and legal liabilities. Moreover, the damage to an organization's reputation can be long-lasting, causing loss of customer trust and creating challenges in retaining existing customers or attracting new ones. In today's digital landscape, maintaining robust information risk management practices is essential to protect both financial standing and credibility in the market.

In contrast, the other outcomes do not logically follow from poor information risk management. Increased employee morale, enhanced customer relationships, and greater innovation are typically associated with positive risk management and a secure informational environment, rather than the repercussions of neglecting those responsibilities.