A financial services company failed to adhere to essential security regulations required by the industry's regulatory body. What is a possible consequence that the company faces due to this non-compliance?
The company experiences decreased stock prices.
The company has its operating license revoked by the regulatory authority.
Employees face increased workloads due to compliance audits.
Customers receive compensation for the inconvenience.
Regulatory authorities have the power to revoke a company's license to operate when it does not comply with mandatory security regulations. This loss of license can halt the company's operations entirely, making it one of the most severe consequences of non-compliance. While increased workloads for employees, customer compensation, and decreased stock prices are possible outcomes, they do not directly prevent the company from continuing its business activities like the loss of a license does.
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What are security regulations in the financial industry?
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