What is considered the intangible cost for an incident?

The intangible cost of an incident refers to losses that are not easily quantifiable but can have a significant impact on an organization's overall health and longevity. Loss of reputation falls into this category because it affects the trust and confidence that customers, clients, and stakeholders have in a business. When an incident occurs, particularly one that becomes public, it can lead to negative perceptions and diminished brand loyalty. This can result in long-term financial impacts, as customers may choose to no longer engage with a business that they perceive as untrustworthy or unreliable.

In contrast, lost productivity hours, investigation and recovery efforts, and loss of business are more tangible costs that can be calculated directly in terms of labor and financial impact. While these are critical aspects of incident costs, they do not reflect the subtler, long-term ramifications that come with a damaged reputation, which can be slow to mend and may persist long after other costs have been dealt with. Thus, loss of reputation is rightly considered an intangible cost, highlighting the importance of managing incidents not only from a financial perspective but also in terms of maintaining a positive public image.