How to face cost based effects as a ratio for assessing the risk according to a pseudo-quantitative method ?

QuestionsCategory: Impact, Risk and MeasuresHow to face cost based effects as a ratio for assessing the risk according to a pseudo-quantitative method ?
Convegno #Ready4EUDataP asked 5 years ago
1 Answers
Enrico Toso Staff answered 5 years ago

It is appropriate that criteria for evaluating probability, impact and controls, which characterize risk dimensions, although usually expressed in the form of quantitative graduation values, always allow to be translated into the corresponding intervals of numerical classes. In particular impacts become more clear when referred to the relevant cost classes faced in case of violation events. What above is useful to compare remediation costs with those associated with the impacts of possible events that would occur in case such measures weren’t put in place. Moreover any reputational damage or intangible impacts too should always be related to cost classes. For instance impacts related to possible loss of customer loyalty should be associated to a lower income that a certain amount of few customer relations would cause to a company.