Health & Safety Incidents
Litigation / Legal Repercussions
Loss of Customers
Damage to Brand Image
Reduced Product / Service Quality
Confidential Information Leaks
Increased Insurance Costs
Damage to Assets
Reduced Quality of Life
Poor Working Conditions
Reduced Employee Engagement
Reduced Employee Satisfaction
Loss of Market Share
Reduced Customer Satisfaction
Loss of Stakeholder Confidence
Credit Rating Downgrades
Failure to Meet Commitments
Difficulty Raising Funds
Liquidity Issues & Failure to Meet Financial Obligations
Loss of Partners
Damaged Culture & Morale
Detailed ExamplesRisks 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|
An estimate of possible future losses.