The Chief Information Security Officer (CISO) has determined the company is non-compliant with local data privacy regulations. The CISO needs to justify the budget request for more resources. Which of the following should the CISO present to the board as the direct consequence of non-compliance?

While reputational damage is a serious consequence of non-compliance, it is more indirect and less quantifiable compared to fines. Although the company may suffer from loss of customer trust and negative public perception, these effects manifest over time and are difficult to measure financially. Thus, they do not provide the immediate justification needed for budget requests.

Sanctions may be imposed as a result of non-compliance, but they often include a range of penalties beyond just financial implications. Sanctions could lead to operational restrictions or additional oversight, which could affect the company's functioning. However, like reputational damage, sanctions are not as directly tied to immediate monetary consequences as fines.

Contractual implications may arise from non-compliance, particularly if the company has agreements that require adherence to data privacy laws. However, these implications are often more complex and can vary significantly based on individual contracts. They do not represent the direct financial impact of non-compliance as clearly as fines do.