What does the term 'consequential' refer to?

The term 'consequential' refers to the secondary results that arise from an action or decision. In the context of a risk assessment or decision-making process, consequential outcomes are those that are not the immediate or direct effects of an action but rather the indirect effects that follow as a result of that action.

Understanding the distinction between primary and consequential results is essential, as it helps organizations anticipate and prepare for potential ripple effects that may stem from their decisions. For instance, a decision made today may have varying impacts down the line, which can influence future strategies, operations, and even legal or reputational standing. When assessing risks, it is vital to consider these secondary consequences to create a comprehensive risk management strategy, ensuring that all potential outcomes are addressed, not just the most obvious or immediate ones.