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Governance, Risk, Audit & Privacy · Foundational

Impact

The magnitude of harm or consequence if a risk event occurs.

Definition

Impact covers financial loss, operational disruption, legal and regulatory consequences, reputational harm, and safety effects. It can be measured qualitatively or in monetary terms (SLE). Business impact analysis helps determine impact for availability-related risks.

Example

A breach of 1 million records would incur notification costs, fines, and customer churn.

Exam tip

Controls such as backups and insurance reduce impact; controls such as patching reduce likelihood.

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