Soft Impact

From BCMpedia. A Wiki Glossary for Business Continuity Management (BCM) and Disaster Recovery (DR).
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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?

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