The potential outcome of a risk event that affects a firm's business objectives on the assumption that an event has occurred and the most probable consequence has resulted rather than the worst-case scenario.
RATING POTENTIAL FOR RISK TO OCCUR
catastrophic Could shut down practice/part of firm. Business objectives not achieved.
major Material impact on practice/firm. Key business objectives not achieved.
moderate Noticeable impact on practice/firm. Some business objectives not achieved.
minor Some impact that is easily remedied.
insignificant Impact not visible.