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The phrase "potential adverse effect" is correct and can be used in written English.
You can use it to refer to an unintentional or unexpected result of an action or policy that could have a negative impact. For example: "The new government policy has the potential to have an adverse effect on the economy."
Exact(60)
The potential adverse effect of healthcare reform on timely access to effective care for people on low incomes provides a plausible explanation that deserves further attention.
"There is existing clinical evidence that hormonal contraception can impact some women's moods, however, from this study there is no way of linking causation, therefore further research is needed to examine depression as a potential adverse effect of hormonal contraceptive use," he said.
"Given the potential adverse effect on the UK economy of Brexit risk, in our view a minority Conservative-led government [that is unable to pass an EU referendum bill] might be less risky for the UK economy than a Conservative-led majority that can pass a referendum bill," argued Citigroup.
So serious were these distortions, Mr Yeats contended, that they were a "smoking gun the most convincing, and disturbing evidence produced thus far concerning the potential adverse effect of regional trade agreements".This was headline news.
According to the mRAC values for 120 soil samples, there were only 13.3% of soils with no potential adverse effect, but 83.3% of soils with a low potential adverse effect and 3.3% of soils with a medium potential adverse effect.
Cognitive impairment is increasingly recognised as an important potential adverse effect of medication.
Recently, jawbone osteonecrosis has been reported as a potential adverse effect of bisphosphonates administration.
However, the safety and potential adverse effect of IGF-1 have not been well defined.
A potential adverse effect on platelet function in the infant is suspected, but remains unclear [37, 59, 61, 64].
HI > 1 showed that exposure to the groundwater could have a potential adverse effect on human health [32, 34].
Rejected potential adverse effect hypotheses that could experimentally be proven as unlikely or minor or non-existent are excluded.
More suggestions(15)
potential undesirable effect
probable adverse effect
potential unfavourable effect
potential pernicious effect
potential detrimental effect
potential disruptive effect
potential damaging effect
potential devastating effect
potential adverse drug
potential adverse event
potential adverse publicity
potential adverse health
potential adverse consequence
potential adverse influences
potentially adverse effect
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com