Impact consideration

Rating	Basis	Description
HIGH	Dollar Value 2	Financial impact likely to exceed $250,000 in terms of direct loss or opportunity cost.
	Judgemental Assessment	Internal Control Significant control weaknesses, which would lead to financial or fraud loss. An issue that requires a significant amount of senior management/Board effort to manage such as: Failure to meet key strategic objectives/major impact on strategy and objectives. Loss of ability to sustain ongoing operations: - Loss of key competitive advantage / opportunity- Loss of supply of key process inputs A major reputational sensitivity e.g., Market share, earnings per share, credibility with stakeholders and brand name/reputation building. Legal / Regulatory Large scale action, major breach of legislation with very significant financial or reputational consequences.
MEDIUM	Dollar Value	Financial impact likely to be between $75,000 to $250,000 in terms of direct loss or opportunity cost.
	Judgemental Assessment	Internal Control Control weaknesses, which could result in potential loss resulting from inefficiencies, wastage, and cumbersome workflow procedures. An issue that requires some amount of senior management/Board effort to manage such as: No material or moderate impact on strategy and objectives. Disruption to normal operation with a limited effect on achievement of corporate strategy and objectives Moderate reputational sensitivity. Legal / Regulatory Regulatory breach with material financial consequences including fines.
LOW	Dollar Value	Financial impact likely to be less than $75,000 in terms of direct loss or opportunity cost.
	Judgemental Assessment	Internal Control Control weaknesses, which could result in potential insignificant loss resulting from workflow and operational inefficiencies. An issue that requires no or minimal amount of senior management/Board effort to manage such as: Minimal impact on strategy Disruption to normal operations with no effect on achievement of corporate strategy and objectives Minimal reputational sensitivity. Legal / Regulatory Regulatory breach with minimal consequences.

2 Dollar value amounts are agreed with the client prior to execution of fieldwork.