Employing an organizational conflict risk assessment for financial control enables organizations to strengthen financial governance, contributing to reduce direct and indirect costs related to conflicts and helps in mitigating risks that could affect the organization's fiscal health and stability.

The main conflict costs within an organization encompass a range of negative effects, both on an individual and organizational level, leading to various direct and indirect expenses.

These include psychological impacts such as mood changes, dependencies, and sleep disturbances, along with absenteeism and stress-induced illnesses.

Additionally, conflicts result in employee turnover, wasted time in discussions, escalated conflicts leading to a deteriorating internal climate, reduced collaboration, obstructionism in tasks, harmful workplace behaviors, inefficiencies in decision-making and production processes, imposition of penalties, loss of opportunities, managerial time spent on conflict resolution, external consulting costs, increased safety risks, and devaluation of intangible assets like motivation, engagement, employee retention, and reputation among external stakeholders.