When assessing the impact of a risk event, what costs should be taken into account?

Assessing the impact of a risk event requires a comprehensive understanding of all potential costs that could arise. This includes direct costs, which are the immediate and easily quantifiable expenses associated with an incident, such as repair costs or loss of revenue. Indirect costs refer to the secondary effects that might not be immediately obvious, such as loss of productivity or damage to reputation.

Additionally, hidden costs are critical to consider because they often manifest over time and can lead to significant financial implications. These might include legal fees related to compliance failures or prolonged customer attrition as a result of trust issues following an incident. By including hidden costs in the assessment, organizations can develop a more accurate picture of the total impact of a risk event.

While other choices may focus on specific types of costs, they do not encompass the full spectrum necessary for a thorough risk impact assessment. It is essential to approach risk assessment holistically to understand all potential financial implications of a risk event effectively.