A company seeks to enhance its production infrastructure and needs to determine how a short-term outage could impact revenue. Leadership wants to prioritize investment based on clear financial consequences. Which solution provides the most accurate measurement of direct financial impact?
Estimate the potential revenue gap, staff expenses, and overhead costs for a numeric calculation
Adopt a category-based approach with severity labels for each hazard
Conduct interviews with department leaders to gather opinions on brand damage
Follow external guidelines to set spending levels for the entire remediation effort
An option that converts possible service interruptions into real costs helps management understand the financial scale and allocate funds accordingly. Estimating lost revenue and other expenses provides precise monetary insight. Focusing on intangible issues or following external standards alone does not yield exact financial data. Using category-based labels offers limited precision and may direct resources away from the most critical hazards.
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What methodologies can be used to estimate the revenue gap during a short-term outage?
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What is the difference between direct financial impact and intangible effects like brand damage?
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Why are external guidelines less effective for determining financial impact in this scenario?