Which of the following is a consequence of a decentralized organization?

A decentralized organization empowers individual units or departments to make decisions independently rather than following a strict top-down management structure. This autonomy can lead to complications in ensuring that policies and procedures are uniformly applied across the organization. As each unit may adopt its own practices and guidelines, maintaining compliance with regulatory requirements becomes increasingly challenging. This can ultimately result in increased compliance risk, as the variance in processes might lead to lapses in adherence to rules and regulations.

Additionally, while it may seem paradoxical, the lack of centralized control is what contributes to this heightened compliance risk. Units acting independently can inadvertently step outside of established compliance frameworks due to a lack of oversight, training, or uniform standards. Therefore, increased compliance risk is a notable consequence of decentralized organizational structures, often reflecting the challenge of managing consistency and adherence in a diverse operational landscape.