What box number is secondary loss magnitude represented in?

In FAIR, secondary loss magnitude is represented in box number 11. This box captures the potential indirect costs and losses that can result from an event. These secondary losses may include reputational damage, loss of customer trust, regulatory penalties, and other effects that are not immediately quantifiable but can significantly impact the overall financial impact of a risk event over time.

Understanding the concept of secondary losses is crucial in the FAIR model, as it emphasizes the importance of considering both direct and indirect consequences of information breaches or other risk events. By doing so, an organization can gain a more comprehensive view of potential risks and develop strategies that account for both immediate and lasting impacts, enhancing their risk management practices.