Impact Template

1. Scenario Description

SCENARIO NAME

Short Description

Long Description

Causes

Key Controls

Related Losses

3. Impact Assessment

DIRECT COSTS

Direct financial impact as listed BELOW

Typical case

Extreme but plausbile case

Remedial costs / Client compensation

Direct cost of ‘making good’ the effects of the scenario Includes the cost of compensating the client(s) and putting them in the position they should have been in

Typical case

Extreme but plausbile case

Control and infrastructure spend

Control and infrastructure spend Incurred costs to improve systems, controls, infrastructure. Includes the costs of appointing an independent third party review, analysis and verification

Typical case

Extreme but plausbile case

Legal liability

Judgements, settlements and other legal costs

Typical case

Extreme but plausbile case

Regulatory fine

A fine by the regulator

Typical case

Extreme but plausbile case

Impact on revenue

Lost revenue should typically be included if the reduction means that revenues would not cover costs for the duration of the scenario. The inclusion of lost revenues where revenue would still cover costs is discretionary and needs to be assessed on a case by case basis

Typical case

Extreme but plausbile case

Impact on brand value & reputation

If possible, estimate the likely impact in monetary terms of any damage to the brand. Be careful not to double-count on lost revenues

Typical case

Extreme but plausbile case

Total sum of costs

Sum of all of the items above

Typical case

Extreme but plausbile case

Direct Impacts

Here is a list of impacts with direct financial consequences

Direct Financial Impacts Loss or Damage to Assets (including write-downs)

  • Debt Write-offs and Write-downs
  • Loss of Recourse
  • Restitution
  • Unexpected Gain
  • Other P&L Loss Impact
  • Other Direct Economic Write-offs and Write-downs
  • Net Interest Settlements
  • Gross Interest Settlements
  • Assets Stolen
  • Unbudgeted Costs

Compensation Impacts

  • Ad Hoc Payment
  • Charge and Fee Waiver
  • Soft-dollars
  • Compensation Payment
  • Premium Discounts

Legal Impacts Court-ordered Settlement

  • Out-of-Court Settlement
  • External Litigation Fees and Costs
  • Internal Litigation Fees and Costs
  • Litigation Settlement

External Direct Impacts External Advisor Costs

  • External Remedial Resource Costs

Internal Direct Impacts Internal Overtime Paid

  • Internal Remedial Costs
  • Increased Operating Cost or Cost of Control

Regulatory Impacts

  • Fines
  • License Suspension
  • License Revocation
  • Direct Regulatory Sanction Impact

Accounting Impacts

  • Economic Provisions

Market-based Impacts