Which statement best reflects the consequences of neglecting technology failures in risk management?

Prepare for the Operational Risk Management Exam with multiple choice questions, expert explanations, and comprehensive study tips. Enhance your risk management skills and boost your confidence to excel on exam day!

Neglecting technology failures in risk management can lead to significant operational disruptions, which may result in various types of losses for an organization. When technology systems fail, they can disrupt critical business processes, affect service delivery, and compromise data integrity. This can lead to financial losses, damage to the organization's reputation, and decreased customer trust. Additionally, such failures can create a cascading effect, impacting employee productivity and morale. Consequently, addressing technology-related risks is vital in maintaining operational resilience and ensuring that the organization can function effectively even in challenging circumstances.

The other choices do not accurately capture the severity of consequences that can arise from overlooking technological failures. For example, minimal impacts on operational efficiency do not reflect the reality of system failures. Increased investment in technology might be a reaction to failures, but it is not a direct consequence of neglecting them. Lastly, while improved employee satisfaction is desirable, it is not a guaranteed outcome of neglecting technology issues; in fact, the opposite may occur during times of organizational disruption.

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