Soft Impact
Indirect Financial Impact and Non-Financial Impact
Indirect Financial Impact
- Overtime
- Contractual Penalties
- Other
- Indirect financial impact is losses which are deemed as “potential” loss and it is usually a projected loss amount. There is no immediate financial payment required.
- Examples of such entries are :
- Interest claims for late payments
- Fines for not meeting statutory obligations
- Contractual penalties
Non-Financial Impact
This is self-explanatory and requires a descriptive answer. The question being asked is “Would this particular non-financial impact apply to you?”
- Examples of such entries are :
- Loss of license
- Loss of good external goodwill
- Loss of business/customers
- Cash flow problems
- Loss of efficiency
- Unmanageable back-logs
- Loss of financial/management control
- Loss of management visibility - without IT systems, management cannot see where the business is going
- Customer relationship
- Legal/statutory requirements
- Degradation of service
- Integrity of operational/historical data - how confident are you that recovered data files will be up-to-date?