What is the effect of inadequate network security?

Inadequate network security significantly heightens the risk of data theft and breaches. When security measures are lacking, vulnerabilities in the network become exposed, allowing unauthorized users or malicious actors to access sensitive information. This can lead to severe consequences for organizations, including loss of customer data, financial loss, damage to reputation, and potential legal ramifications.

In contrast, the other options reflect positive outcomes that are not associated with inadequate network security. For instance, increased employee productivity and improved customer trust typically arise from robust security practices that protect data and create a safe working environment. Enhanced data sharing capabilities can also result from secure networking practices, which encourage collaboration without the risk of information theft. Therefore, option C clearly illustrates the adverse impact of insufficient security measures within a network environment.