A firm is assessing the risk of business disruption due to several types of natural disasters. When determining the risk of each type of disaster, the firm should consider the probability of each type of disaster and the:
A firm is assessing the risk of business disruption due to several types of natural disasters. When determining the risk of each type of disaster, the firm should consider the probability of each type of disaster and the:
When assessing the risk of business disruption due to natural disasters, it is crucial for the firm to consider the potential consequences of such disruptions. These consequences could include financial losses, operational downtime, or reputational damage, and are critical to understanding the overall risk posed by each type of disaster. Simply knowing the probability of an event is not sufficient; the firm must evaluate the impact those events will have to effectively manage and mitigate the risks.
probability of a disaster occurring is certainly a factor, the risk assessment is ultimately concerned with the potential impact on the business.