You are the risk official in Techmart Inc.
You are asked to perform risk assessment on the impact of losing a network connectivity for 1 day.
Which of the following factors would you include?
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A. B. C. D.D.
The impact of network unavailability is the cost it incurs to the enterprise.
As the network is unavailable for 1 day, it can be considered as the failure of some business units that rely on this network.
Hence financial losses incurred by this affected business unit should be considered.
Incorrect Answers: A, B, C: These factors in combination contribute to the overall financial impact, i.e., financial losses incurred by affected business units.
As the risk official at Techmart Inc., when performing a risk assessment on the impact of losing network connectivity for one day, you would need to consider various factors to determine the potential impact of the risk. Out of the options provided, the following factors would be relevant:
D. Financial losses incurred by affected business units: The financial losses incurred by the affected business units would be one of the critical factors to consider. These losses could include lost sales revenue, missed deadlines, contract penalties, and extra expenses incurred to restore the network connection. Understanding these financial impacts can help the organization determine the cost-effectiveness of investing in a redundant network connection or disaster recovery solution.
B. Hourly billing rate charged by the carrier: The hourly billing rate charged by the carrier would be another important factor to consider. This cost would be incurred if the organization chooses to have a redundant network connection as a backup. The cost of the redundant network connection should be compared to the potential financial losses the organization could suffer from the one-day network outage. If the potential financial losses are more significant than the cost of a redundant network connection, then it would be cost-effective to invest in one.
C. Value that enterprise gets on transferring data over the network: The value that the enterprise gets from transferring data over the network would also be relevant. This value could be related to business operations or revenue generation, and understanding this value can help the organization determine the significance of the risk.
A. Aggregate compensation of all affected business users: The aggregate compensation of all affected business users would be less relevant as it does not necessarily represent a direct cost to the organization. While it is essential to consider the impact of the outage on employees and their productivity, this factor would not help the organization determine the financial impact of the risk.
In summary, the risk official at Techmart Inc. should focus on evaluating the potential financial losses incurred by the affected business units and compare it with the cost of having a redundant network connection, while also considering the value the organization gets from transferring data over the network.