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Monetary Value

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Monetary value is the clear financial amount that your organization possesses or can lose. To a large extent, this is pretty straightforward. Organizations typically have financial metrics for predicted income, estimated costs for outages, estimates for injuries, estimates for supply chain interruptions, and so on.

Airlines are an easy-to-recognize example of what happens when there are computer outages that interrupt operations. In 2017, a power outage at the Hartsfield-Jackson International Airport in Atlanta caused the cancellation of 1,173 flights. This caused disruption to the lives and business of hundreds of thousands, if not millions, of people given the cancelled flights and the other people impacted. While a good portion of the loss was intangible, Delta Airlines estimated a hard loss of up to $50,000,000.

All organizations with reasonable financial practices have clear estimates of the financial costs of incidents. If you are responsible for mitigating UIL, it would benefit you to talk to your risk or accounting departments to see whether they have any metrics regarding the value of operations, interruptions, and so on. When it comes to technology, computer incidents, unfortunately, have not been generally well defined regarding the resulting loss. However, you can, gather costs from third parties that track such information and extrapolate it for your own purposes. The good news is that there have been significant incidents documented in the technology field to provide you with a good start.

You should try to use any metrics available to you in calculating the financial impact of UIL. You can use this data in justifying the efforts and resources you require to mitigate UIL. The resources include cash and people to prevent the initiation of loss, as well as to mitigate the loss, should it be initiated. You also need to justify the organizational impact you may create in changing processes and otherwise impacting the organization. While the other categories of loss discussed can assist in making your case, demonstrating the potential loss in monetary value is the easiest way to justify the resources you require.

You CAN Stop Stupid

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