Failing to address known compliance violations can lead to what consequence?

• A. Increased liability exposure.
• B. Improved risk posture.
• C. Greater external trust.
• D. Reduced regulatory scrutiny.

Answer: (A)

Not addressing known compliance violations signals that controls are ineffective and noncompliance is being tolerated. This tends to increase liability exposure because regulators and plaintiffs can hold the organization—and sometimes responsible individuals—accountable for continuing violations, leading to fines, penalties, settlements, and enforcement actions. It also raises the likelihood of audits, mandatory remediation, and reputational damage that can affect contracts, financing, and insurance costs.

In contrast, improving risk posture, earning external trust, and reducing regulatory scrutiny come from genuine remediation and ongoing adherence to requirements, not from ignoring issues.