Which of the following is a potential risk of not conducting background checks?

Not conducting background checks can significantly impact a company's reputation. When employees with questionable backgrounds are hired, there is a risk of various negative behaviors, such as theft, dishonesty, or other unethical actions that could harm customers or other employees. This can lead to incidents that attract public attention, resulting in damage to the company's brand image and trustworthiness. A tarnished reputation can drive customers away and deter potential top talent from wanting to work at the organization, as they may prefer to be associated with companies known for rigorous ethical standards and employee integrity. Maintaining a strong reputation is critical in the hospitality industry, where guest experience and trust play pivotal roles in a company's success.

The other options relate to operational aspects or financial implications but do not directly capture the immediate and broader public relations issues that arise from failing to conduct thorough background checks.