Term  Definition                            Cause The underlying reason(s) giving rise to an operational event.  Event probability The estimate of the likelihood that an event will occur.  Event type Standardised loss category treated as one group depending on specific  similarities.  Loss All extra out of pocket expenses and financial liabilities as a result of an operational loss event (i.e. the result of a Loss Event).  Direct loss The negative financial impact to the profit and loss account caused by a realised operational risk event.  Expected EL)   The total loss amount, which is expected in a given period.  Indirect The opportunity cost caused by an operational risk incident and losses which are secondary to direct losses.  Unexpected The loss amount in excess of the expected loss measured in statistical terms.  Stress A loss with high impact and low frequency caused by an operational risk, to estimate the total shape of a loss distribution.  Effect The financial or non-financial result of an operational risk incident.  Stress A loss with high impact and low frequency caused by an operational risk, to estimate the total shape of a loss distribution.  Event See incident.  Impact The financial and non-financial result of an event.  Incident A single manifest operational risk, which may result in both a loss or a gain.  Likelihood See: probability of an event.  Missed [future]  opportunity          The inability to pursue business prospects with a view to generate revenue in the future eg in the aftermath of an operational risk incident. The outcome of a missed opportunity cannot be quantified with certainty and should not be considered as an operational risk loss as it is not a negative financial impact to existing (booked) P&L. (although it would impact the future P&L positively or negatively - depending on its actual future outcome.)  Foregone                [future] revenue Future income that would have been earned with a high certainty of outcome, in the absence of the operational risk incident which will no longer be earned, in the aftermath of an operational risk incident. There is perhaps an argument that foregone "certain", ie quasi-contractual revenue could be considered as part of the direct loss amount associated with a given incident.  Near miss An incident, which did not result in a financial or reputational loss, due to effective internal controls, damage controls or by accident.  Risk appetite The limit of the willingness of decision makers to take risk.