Losing your money
Description: Any company as a whole is made up of individuals. If the company experiences a revenue reduction, this translates down to a reduction in benefits for the employees and possibly even to a reduction of the number of its employees.
Risk Factors: • The financial report is impacted when an application or network service level agreement is not met. • Reduction in benefits for the individual. • Reduction in headcount for the company. • A company's expenses will exceed its revenues.
Example: A company's expenses exceed its revenues. The business looks at ways to reduce costs. Employee benefits are re-examined and modified to support reducing company cost thus reducing its yearly expenses.