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?
Conduct interviews with department leaders to gather opinions on brand damage
Adopt a category-based approach with severity labels for each hazard
Estimate the potential revenue gap, staff expenses, and overhead costs for a numeric calculation
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 is a revenue gap?
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Why is estimating financial costs more effective than category-based severity labels?
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How are staff expenses and overhead costs calculated during an outage?