Defining consequence costs for risk matrix setup

Define the monetary cost associated to any defined consequences for any of the defined consequence categories of the risk matrix.

Consequences can also be identified as black swans. Black swans are unlikely events that have huge costs. Multiplying the low probability with the high cost may obscure this high cost danger. For example, a 1% chance of a $100,000 cost results in a loss of $1,000. However, a 50% chance of a $2,000 cost event also has a result of $1,000.

  1. Select Equipment > Setup > Risk Matrix Setup.
  2. Select the risk matrix for which to define consequence costs, and then click the Consequence Costs tab.
  3. Specify this information:
    Consequence
    Specify the consequence for which to define costs.
    Organization
    Specify the organization for the consequence cost.
    Consequence Cost
    Specify the monetary value of the consequence cost.
    Black Swan
    Select this check box if the consequence cost is a black swan. A black swan is an unlikely event that can have a very large cost.
  4. Click Submit.
Parent topic: Defining details for risk matrix setup