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?

Back To >> Part 1 of BIAQ

Back To >> Impact Area of Business Function V2.0