The Boardish Glossary: Risk Quantification Terminology
The risk quantification process is crucial in order to help the board make financial decisions a lot quicker. To help you better understand the process, we compiled a comprehensive list of risk quantification terminology. These terms are divided into three categories: Filter Terminology, Dashboard Terminology, and Boardish Terminology.
Filter Terminology
Regulation Loss – The financial impact to the organisation in the event of being hit by regulation fines as a result of a threat or combination of threats to the organisation.
Sales Loss – The amount of sales lost as a result of a threat or combination of threats to the organisation.
Market Loss – The financial impact of losing market positioning as a result of a threat or combination of threats to the organisation.
Salary Loss – The amount of financial impact to salaries as a result of a threat or combination of threats to the organisation.
Dashboard Terminology
Total Threat Loss – The total risk of financial damage to your company as a result of the threat.
Solution contribution on-prem – How much financial impact the solution has in mitigating the chosen threat on premises.
On-prem exposure – The outstanding financial risk from threats on premise
Solution contribution in-cloud – How much financial impact the solution has in mitigating the chosen threat in the cloud.
In-cloud exposure – The outstanding financial risk from threats in the cloud.
Boardish Terminology
High-Impact Users – Users who are very affected or cannot perform their daily job roles or functions in the event technology in the organisation becomes unavailable.
Medium-Impact Users – Users who are affected and have to adapt their daily job roles or functions in the event technology in the organisation becomes unavailable.
Low-Impact Users – Users who are barely, or not affected in their daily job roles or functions in the event technology in the organisation becomes unavailable.
Relative Rate of Sales – The percentage of sales lost per day during closure or if a risk comes to fruition.
Threat Protection Factor – The performance effectiveness of the solution against the threat.