What can be caused by failure to comply with established procedures within an organization?

Failure to comply with established procedures within an organization can lead to legal and financial repercussions. When protocols are not followed, organizations may be exposed to various forms of liability or risk, such as violating safety regulations, breaching contracts, or failing to adhere to industry standards. This non-compliance can result in lawsuits, financial penalties, or increased insurance costs, which have significant implications for the organization’s financial health and reputation.

Additionally, non-compliance can create operational inefficiencies and risks that could ultimately harm the organization’s performance and stakeholder trust. Recognizing the importance of established procedures helps ensure that the organization operates within legal parameters and maintains its credibility in the industry.