Which of the following would generally have the GREATEST negative impact on an organization?
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A. B. C. D.C.
Although the theft of software, interruption of utility services and internal frauds are all significant, the loss of customer confidence is the most damaging and could cause the business to fail.
All of the options listed can have negative impacts on an organization, but the one with the GREATEST impact would be C. Loss of customer confidence. Here's why:
A. Theft of computer software - This can certainly have negative consequences for an organization, such as lost productivity due to missing software, the cost of replacing the software, and potential legal consequences. However, in most cases, the impact is limited to the organization and does not directly affect its customers or clients.
B. Interruption of utility services - Depending on the type of organization, an interruption in utility services could be extremely disruptive, resulting in lost productivity, data loss, and potential safety hazards. However, in most cases, utility disruptions are temporary and can be resolved relatively quickly, with minimal long-term impact.
D. Internal fraud resulting in monetary loss - Internal fraud can be costly for an organization, both in terms of the actual financial loss and the damage to the organization's reputation. However, if the fraud is detected and addressed quickly, the impact can be mitigated.
C. Loss of customer confidence - This can be the most damaging for an organization as it can directly impact the organization's revenue and reputation. If customers lose confidence in an organization's ability to protect their personal information, for example, they may take their business elsewhere, resulting in lost revenue. Additionally, negative publicity can damage the organization's reputation and make it more difficult to attract new customers in the future. The impact of loss of customer confidence can be long-lasting and difficult to recover from.
Therefore, loss of customer confidence would generally have the GREATEST negative impact on an organization.