Which of the following is a characteristic of compliance risk?

Compliance risk is specifically defined as the potential for financial loss or reputational damage that can arise from a failure to adhere to laws, regulations, and established internal policies. Choosing the option that describes the risk of violating laws and regulations accurately captures the essence of compliance risk.

Organizations face serious consequences, including fines, penalties, and damage to their reputation if they do not comply with applicable laws and regulations. This type of risk is directly tied to the adherence to legal frameworks governing various industries and sectors, making it distinct from other types of risks.

The other options pertain to different aspects of organizational risk that do not specifically fall under compliance. For instance, the failure to achieve strategic goals relates more to operational and strategic risk, while loss of market share addresses competitive and market risks. Similarly, the inability to secure financing is tied to financial risk rather than compliance. Thus, the option that highlights the risk of violating laws and regulations is the most accurate characterization of compliance risk.