What outcome can occur from failure to adhere to obligation management standards?

Failing to adhere to obligation management standards can indeed lead to potential violations of fiscal laws. This outcome is significant because obligation management involves ensuring that financial resources are allocated, spent, and reported in accordance with regulatory requirements and organizational policies. When standards are not followed, there can be mismanagement of funds, which might result in overspending, unauthorized expenditures, or non-compliance with legal or regulatory financial reporting obligations.

These violations can lead to serious consequences, such as audits, fines, or sanctions from governing bodies, and can damage an organization’s reputation and credibility. Adhering to obligation management standards is crucial not only for compliance but also for ensuring that resources are used efficiently and effectively.

In contrast, other options like increased funding opportunities, greater team collaboration, and improved project efficiency typically arise from adherence to standards and best practices, rather than from failure to follow them. This highlights the importance of maintaining robust oversight and management practices in financial operations.