Box #9 is defined by which components in terms of secondary loss?

The definition of Box #9 within the FAIR model relates specifically to secondary loss, which encompasses the potential additional losses that may arise as a consequence of a primary loss event. In the context of this framework, Box #9 is characterized by two main components: Secondary Loss Event Frequency and Secondary Loss Magnitude.

Secondary Loss Event Frequency refers to how often secondary losses are expected to occur following a primary incident, while Secondary Loss Magnitude addresses the potential size or impact of those secondary losses. Together, these components provide a clear understanding of the risk associated with secondary losses, allowing organizations to quantify and manage these risks effectively. This contributes to a comprehensive risk assessment, as it helps to navigate the full spectrum of potential financial consequences stemming from initial loss events.

This aligns with the principles of the FAIR model, which emphasizes the importance of quantifying both primary and secondary effects in risk management. By focusing on these components, organizations can better prepare and mitigate the impact of not only the direct losses but also the cascading effects that may follow.