BUSINESS RISKS

QUANTIFYING RISKS

Determine the significance of the potential risks
and resulting consequences identified, without
consideration of controls
(WORSE CASE SCENARIO):

1. Describe narratively the potential risk

Asset at risk

Specific risk for the asset

How the risk could occur

2. Predict likelihood of event occurring

High/Medium/Low

1 - 2 - 3

3. Calculate potential loss ($, H/M/L, 1/2/3, etc.), considering

Consequences and likelihood of occurrence

Asset value

Length of loss

Timing of loss

Impact on organization, etc.