Ignoring legal risk can be detrimental to a business. Potential consequences include: 1. Financial Loss: Fines, penalties, and litigation costs can be substantial, draining resources. 2. Reputational Damage: Legal issues can harm a company’s reputation, leading to loss of customers and market share. 3. Operational Disruptions: Legal problems can disrupt business operations and divert management’s attention from core activities. 4. Loss of Competitive Edge: Companies that fail to manage legal risk effectively may find themselves at a disadvantage compared to competitors who are more proactive.