Risk impact is an estimate of the potential losses associated with an identified risk. It is a standard risk analysis practice to develop an estimate of probability and impact. The following are common types of impact.
Health & SafetySafety or health risks related to a location, lifestyle, occupation or activity. For example, a risk assessment for a major earthquake typically includes estimates of casualties.
Quality of LifeNations, cities, communities, organizations and individuals may base risk assessments on quality of life factors. For example, before purchasing a house an individual may consider the risk that an adjacent industrial property will pollute the air.
SustainabilityRisks to the environment such as estimates of potential damage to an ecosystem.
FinancialFinancial impacts such as lost revenue, costs and expenses. Financial impacts may be modeled as a single estimate or a probability distribution.
TimeProjects often estimate risk impact in terms of cost and time. For example, a project team may estimate the impact of technical risks in terms of delays to a schedule.
ReputationRisk impact can be viewed in terms of social factors such as reputation. For example, an airline might assess the risk of a practice such as overbooking in terms of customer satisfaction and brand value.
This is the complete list of articles we have written about risks.
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A complete guide to risk analysis.
The common ways to model risk probability.
A definition of qualitative risk analysis with an example.
A definition of cost of risk with examples.
A definition of risk perception with examples.
The difference between a risk and a hazard with examples.
A list of threats for SWOT analysis.
The definition of what-if analysis with examples.
A list of common external factors.
A definition of risk exposure with example calculations.
An overview of the risk management process.
An overview of cascading failure and resilience.
An overview of business as usual.
A list of techniques for reducing risk.
The difference between risk mitigation and risk reduction.
A list of common risk controls.
A definition of risk value with example calculation.
A definition of risk communication with examples.
Overview of the steps in a risk management process.
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