In risk analysis, which of the following can be identified as a consequence of a disaster?

Question

Options

• ALoss of stockholder confidence
• BLoss of competitive edge
• CLoss of operating capability
• DLoss of goodwill

• A
  6% (2)
• B
  19% (6)
• C
  72% (23)
• D
  3% (1)

Explanation

Loss of operating capability is the direct, immediate consequence a disaster imposes on an organization - it describes the disruption to systems, facilities, or processes that renders the business unable to function normally, which is precisely what risk analysis frameworks (like BCP/DR planning) target for mitigation.

The other three options - loss of stockholder confidence (A), loss of competitive edge (B), and loss of goodwill (D) - are secondary or downstream effects: they result from the operational disruption, not from the disaster itself. They are business and reputational impacts that cascade after the organization loses its ability to operate, making them consequences of the consequence, not the direct disaster outcome.

Memory tip: Think "disaster → can't operate → then everything else falls apart." In risk analysis, the disaster's direct hit is always operational first; the reputational and market effects follow later. If you see options describing reputation, market position, or relationships, those are downstream - the operational loss comes first.

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