Which of the following is a consequence of non-compliance?

Incurred legal penalties and fines represent a significant consequence of non-compliance. When organizations fail to adhere to laws, regulations, standards, or internal policies, they face various repercussions, which can include hefty financial penalties. Legal frameworks set by regulatory agencies are designed to ensure that businesses operate within the bounds of the law, and neglecting these can lead to investigations, lawsuits, or enforcement actions. The financial impact often goes beyond just fines, as non-compliance can result in expensive litigation, damages, and increased regulatory scrutiny in the future.

In contrast, the other options reflect positive outcomes rather than consequences of non-compliance. Enhanced employee engagement and increased credibility with stakeholders are outcomes typically associated with adherence to best practices and regulatory standards. Expansion into new markets usually requires compliance with local laws and regulations, so it’s unlikely to be a consequence of non-compliance. Therefore, it is clear that incurred legal penalties and fines accurately represent the direct and tangible repercussions faced when an organization does not comply with legal and regulatory requirements.