ERM glossary

Impact

الأثر حجم الضرر الناتج إذا وقع الخطر.

Impact (or consequence) is the severity of harm if a risk event occurs — financial, operational, regulatory or reputational. On a 5×5 scale it runs from 1 (negligible) to 5 (severe).

Impact multiplied by likelihood gives the risk score used on the risk heat map. Quantifying impact in money terms enables Monte Carlo simulation and value at risk analysis.

Related terms

See it in Rukn ERM

Rukn ERM puts impact to work in a live, mobile, bilingual risk program — aligned to COSO ERM 2017.

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