Annexes J–M
FIRE captures impact across four dimensions, each scored on a six-level scale from None to Severe. Impact ratings are essential from the Initial phase and feed into the overall severity rating.
The actual or expected financial loss, cost, or other adverse financial effect on the entity as a result of the incident.
| Level | Description |
|---|---|
| None | No financial loss, cost, or adverse financial effect attributable to the incident. |
| Insignificant | Negligible financial impact; any loss or cost is immaterial and easily absorbed within normal operating budgets. |
| Minor | Some financial impact but within normal risk appetite and manageable without exceptional measures. No effect on capital ratios or regulatory requirements. |
| Moderate | Material financial impact above the entity's materiality threshold. Provisions or write-offs may be required; management attention and reporting triggered. |
| Substantial | Significant financial impact affecting the entity's capital position, liquidity, or profitability. May require regulatory notification of financial impact. |
| Severe | Catastrophic financial impact posing a threat to the entity's viability or solvency. Potential for systemic financial spillover to other institutions or markets. |
The degree to which the incident disrupted the entity's ability to carry out its critical functions and services.
| Level | Description |
|---|---|
| None | No disruption to operations or services. |
| Insignificant | Negligible operational disruption; business as usual maintained. No customer impact or service degradation. |
| Minor | Some disruption to non-critical functions or internal processes. No perceptible impact on customer-facing services. |
| Moderate | Noticeable disruption to services or processes; some customer impact. Critical functions maintained but degraded. Active management required. |
| Substantial | Significant disruption to critical services or functions; widespread customer impact. Recovery requires material resource allocation and escalation. |
| Severe | Total or near-total failure of critical functions; catastrophic or prolonged service outage. Recovery requires extraordinary measures. Potential for systemic operational disruption. |
The actual or potential damage to the entity's reputation, public standing, or relationships with clients, counterparties, and the public.
| Level | Description |
|---|---|
| None | No reputational damage or public awareness of the incident. |
| Insignificant | No media coverage; no public awareness. Any reputational effect is internal and does not affect client or market relationships. |
| Minor | Limited or localised media coverage; minimal public awareness. Brief negative sentiment with no lasting effect on client relationships. |
| Moderate | Notable media coverage; some public concern. Regulators take notice. Some client attrition or heightened client communication required. |
| Substantial | Widespread negative media coverage; significant public concern and regulatory scrutiny. Material impact on client confidence, market perception, or counterparty relationships. |
| Severe | Extensive and sustained adverse publicity; loss of market confidence. Potential regulatory enforcement action. Significant client or counterparty withdrawal or systemic loss of trust. |
The impact of the incident on parties external to the reporting entity — including clients, counterparties, market participants, and the broader financial system.
| Level | Description |
|---|---|
| None | No impact beyond the entity's own operations and staff. |
| Insignificant | Negligible or no external impact. No effect on clients, counterparties, or the wider market. |
| Minor | Limited impact on a small number of clients or counterparties. No systemic concern and no market-wide effect. |
| Moderate | Noticeable impact on a wider group of clients, counterparties, or market participants. May include delays or losses for third parties. Regulatory interest in external effects. |
| Substantial | Significant impact on critical market participants, financial market infrastructure, or a substantial number of clients. Risk of transmission to other entities or markets. |
| Severe | Systemic impact; multiple systemically important entities or critical market infrastructure affected. Contagion risk is material. Potential for broad financial instability. |
See also: Severity Scale (Annex E) — the overall severity rating that synthesises these four impact dimensions.