Which of the following is NOT an impact of an effective risk management program?

An effective risk management program is designed to identify, assess, and mitigate risks, which generally leads to positive outcomes across an organization. One of the primary goals of such a program is to foster a safer and more productive work environment. As a result, when risk management is implemented effectively, it tends to enhance employee morale rather than diminish it.

In contrast, options that highlight improved quality processes and technology, increased profitability, and support for managerial objectives are all positive impacts that stem from a well-run risk management initiative. Such programs often lead to better decision-making, efficiency in operations, and alignment of risk-taking with the organization’s objectives, ultimately benefitting the organization as a whole.

Decreased employee morale stands out as the outlier in this context, as it contradicts the expected outcomes of a successful risk management program, which typically aims to engage and empower employees through a clear understanding of risks and support policies that ensure their well-being and job satisfaction.