How can a significant fire or major property loss impact an organization?

A significant fire or major property loss can severely disrupt an organization's ability to function and lead to a substantial loss of income. This impact stems from several factors. First, the physical damage to facilities and equipment often halts operations, making it impossible to carry out normal business activities. This interruption can last for an extended period, depending on the extent of the damage and the efficiency of the recovery efforts.

Moreover, financial implications are extensive; the organization may not only face immediate repair costs but also lose revenue during the downtime as it cannot produce goods or provide services. In addition, clients or customers may turn to competitors if the organization is unable to meet their needs during the recovery period, resulting in long-term financial ramifications. Therefore, option C accurately highlights the critical importance of risk management and planning to mitigate such devastating impacts on an organization.