What is a potential consequence of not properly managing risks?

Not properly managing risks can lead to reduced operational efficiency. When risks are not identified and mitigated, organizations can experience disruptions in their processes, leading to inefficient use of resources, increased downtime, and potential operational failures. For instance, if a company does not assess the risks associated with its supply chain, it may face delays, increased costs, and difficulties in meeting customer demands, ultimately hindering its ability to operate effectively.

In contrast, the other options imply positive outcomes that are unlikely to occur as a result of poor risk management. Increased employee morale and enhanced collaboration are typically fostered in environments where risks are well-managed, creating a sense of security and teamwork among staff. Improved financial performance also tends to be linked to effective risk management, as it can lead to cost savings and better investment decisions. Therefore, failing to manage risks properly is more likely to diminish operational efficiency than to enhance any of the other cited aspects.