A software development project is undergoing an audit and it has been revealed that one of its critical data processing components does not adhere to new data protection laws. What is a likely consequence if the noncompliance is not rectified?
There could be an immediate loss of all project data due to legal restrictions enforcing data handling.
The company's market share will likely decrease sharply solely due to the noncompliance issue.
The company might undergo an internal reorganization as a direct consequence of the audit findings.
The company may face substantial financial penalties for violating applicable data protection laws.
Financial penalties are a common consequence of noncompliance with laws, especially data protection laws which are strictly regulated. Direct financial penalties can significantly impact the project's budget and the company's financial health. In contrast, a damaged reputation, while possible, is more of an indirect consequence and loss of project data or internal reorganization are not direct consequences of noncompliance.
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