Which of the following is a component of legal impacts of risk?

In the context of risk management and contract administration, increased compliance costs are a crucial component of the legal impacts of risk. When organizations operate within a legal framework, they are required to adhere to various laws, regulations, and standards. Failing to comply can result in legal repercussions, fines, or even litigation, which emphasizes the importance of compliance in mitigating risk.

Compliance costs encompass the expenses associated with ensuring that an organization meets all legal obligations, such as regulatory fees, costs for consulting with legal experts, and investments in compliance-related training programs. These costs can significantly increase, particularly in industries that are heavily regulated or when new laws are introduced. Therefore, understanding and planning for these costs is vital for effectively managing the legal risks associated with contracts and overall business operations.

In contrast, enhanced employee training, higher market shares, and better customer feedback do not directly relate to the legal impacts of risk in the same manner. While they are essential for the operational and strategic aspects of a business, they do not directly address the legal implications or compliance requirements that contribute to the legal landscape an organization must navigate.