What is 'impact' in the context of the FAIR framework?

In the context of the FAIR framework, 'impact' refers specifically to the potential damage or loss that an organization may face as a result of a risk event. This is fundamental to understanding risk management, as it involves quantifying the consequences that can arise from identified risks. In the FAIR framework, assessing impact allows organizations to better prioritize their risk management efforts and allocate resources effectively to mitigate those risks.

This definition encompasses not just direct financial losses but also broader implications for the organization, such as disruptions to operations, reputational damage, and regulatory fines. The framework emphasizes the importance of quantifying these potential impacts to aid in informed decision-making regarding cybersecurity investments and strategies.

Options that focus solely on costs, customer trust, or training effects do not capture the comprehensive understanding of 'impact' as defined in the FAIR framework. Instead, they represent narrower aspects of risk that may contribute to or arise from the overall impact but do not encapsulate the broader potential damages resulting from risk events within an organizational context.