Which of the following is an example of a compliance risk?

Non-compliance with data protection regulations is a clear example of a compliance risk because it directly relates to the organization's obligation to adhere to legal and regulatory frameworks governing how data is managed and protected. Compliance risks arise when a company fails to meet the standards set forth by laws such as the General Data Protection Regulation (GDPR) or the Health Insurance Portability and Accountability Act (HIPAA), which can lead to significant consequences such as fines, legal actions, and damage to the organization's reputation. Organizations must actively manage and mitigate such risks to ensure they adhere to required practices in data handling, thereby safeguarding their assets and maintaining trust with customers and stakeholders.

In contrast, high employee morale, excessive marketing expenses, and productive team meetings do not inherently pose compliance risks, as they are more related to operational efficiency, financial health, and workplace culture rather than adherence to regulatory requirements.