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Assessing Impact:
As with the assessment of likelihood, a valuable way of assessing impact would be the creation of categories of impact as follows:
Level
Descriptor
Description
A
Insignificant
Negligible. No risk of injury, low $ loss, small delays, no reputation impact
B
Minor
Easily remedied, medium $ impact
C
Moderate
High $ loss, capability impaired, moderate impact on reputation
D
Major
Major $ loss, major impact on reputation
E
Catastrophic
Extreme $ loss (bankruptcy), huge political impact, total loss of reputation
The end result of the evaluation process would be to classify each event with a probability figure (1 to 5), and an impact figure (A to E).
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