Concept:The correct modal verb must express the right degree of probability and be grammatically valid.
Explanation:The original phrase "might lead to severe consequences" is grammatically correct, but "might" suggests a weak possibility.
Since the CEO is emphasising vigilance and warning about serious outcomes, a stronger modal verb is more suitable.
The phrase "can lead to severe consequences" conveys a stronger potential result and fits the context perfectly.
Let us examine each option.
Option A - "can lead to severe consequences" is grammatically correct and contextually strong, so it is the best replacement.
Option B - "should lead severe consequences" is incorrect because "lead" must be followed by "to" before its object.
Option C - "can be led to severely consequences" is incorrect because "severely" is an adverb and cannot modify the noun "consequences."
Option D - "shall be leading to severe consequences" is awkward and overly formal, making it unsuitable.
Option E - "No correction required" is not the best choice because Option A provides a more impactful and precise meaning.
The correct sentence is: The CEO emphasized the need for increased vigilance by employees, stating that negligence can lead to severe consequences in highly regulated industries.
Answer:Option A - "can lead to severe consequences"