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CBAP · Question #120

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

The correct answer is A. Loss of operating capability. In risk analysis, loss of operating capability is the direct, primary consequence of a disaster because it represents the immediate inability to perform normal business functions. Other losses are secondary effects that flow from this operational disruption.

Strategy Analysis

Question

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

Options

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

How the community answered

(41 responses)
  • A
    78% (32)
  • B
    2% (1)
  • C
    12% (5)
  • D
    7% (3)

Why each option

In risk analysis, loss of operating capability is the direct, primary consequence of a disaster because it represents the immediate inability to perform normal business functions. Other losses are secondary effects that flow from this operational disruption.

ALoss of operating capabilityCorrect

Loss of operating capability is the primary, direct consequence of a disaster in risk analysis because a disaster by definition disrupts the ability to conduct normal operations - systems go offline, facilities become unavailable, or critical processes halt. This is the immediate, measurable impact from which all downstream losses (financial, reputational, competitive) ultimately originate.

BLoss of goodwill

Loss of goodwill is a secondary reputational consequence that may follow a disaster over time but is not the direct operational impact classified as the primary disaster consequence in risk analysis.

CLoss of competitive edge

Loss of competitive edge is an indirect, longer-term business outcome rather than the immediate operational consequence that risk analysis frameworks catalog as a direct disaster result.

DLoss of stockholder confidence

Loss of stockholder confidence is a downstream financial and reputational effect that occurs after a disaster, not the primary operational consequence that risk analysis uses to classify disaster impact.

Concept tested: Direct consequences of disaster in risk impact analysis

Source: https://csrc.nist.gov/publications/detail/sp/800-30/rev-1/final

Topics

#risk analysis#disaster consequences#operational loss#business impact

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