Health & Safety Incidents | Financial Loss |
Reputational Damage | Litigation / Legal Repercussions |
Employee Turnover | Loss of Customers |
Damage to Brand Image | Increased Costs |
Reduced Product / Service Quality | Reduced Productivity |
Production Outages | Business Disruption |
Disrupted Systems | Data Leaks |
Confidential Information Leaks | Increased Insurance Costs |
Damage to Assets | Environmental Damage |
Reduced Quality of Life | Poor Working Conditions |
Reduced Employee Engagement | Reduced Employee Satisfaction |
Loss of Market Share | Reduced Customer Satisfaction |
Loss of Stakeholder Confidence | Failed Projects |
Failed Investments | Credit Rating Downgrades |
Failure to Meet Commitments | Difficulty Raising Funds |
Liquidity Issues & Failure to Meet Financial Obligations | Loss of Partners |
Damaged Culture & Morale | Compliance Issues |
Detailed Examples
Risks can be modeled with a probability impact matrix that list probabilities of different levels of risk impact. It is also common to list a single impact for each risk. The following are illustrative examples.A product development team identifies a risk that a product may fail on the market. The impact would be below forecast revenue, market share and return on investment.
A bank identifies a risk of an information security incident. The impact would include revenue impacting outages, direct financial losses, reputational damage, compliance issues, increased operational costs and legal liability.
A construction company identifies a risk that a project will go over budget. As the project is based on time and materials, the impact would include client dissatisfaction, damaged reputation and potential for litigation.
| Overview: Risk Impact Examples | ||
Type | ||
Definition | An estimate of possible future losses. | |
Related Concepts | ||
