What is a significant outcome of not implementing risk management practices?

The choice highlighting the increased likelihood of major losses captures a fundamental consequence of neglecting risk management practices. Without an effective risk management framework in place, organizations expose themselves to various potential threats and uncertainties that could significantly impact their operations, finances, and overall stability.

Risk management is designed to identify, assess, and mitigate risks before they can result in significant adverse events. When these practices are ignored, an organization fails to recognize vulnerabilities that could lead to financial losses, reputational damage, or operational disruptions. It essentially creates a scenario where risks are allowed to materialize unchecked, potentially resulting in major losses that could have been prevented or minimized through proactive risk management strategies.

Enhanced operational efficiency, higher employee morale, and lower insurance premiums typically emerge as positive outcomes of effective risk management and are not directly related to the repercussions of failing to implement such practices. Therefore, these options do not accurately reflect the significant dangers of neglecting risk management, making the increased likelihood of major losses the correct answer.