Loss types
Losses can be assigned to the following loss types:
Direct loss
Direct losses are the costs involved in resolving problems and repairing damages. Recovering the fixed assets, for example, rebuilding a factory that has burnt down, including the machinery, incurs the greatest portion of the costs.
Indirect loss
Indirect losses are the costs that are incurred as a result of the damaging incident, for example, production downtime costs due to fire damage and the resulting contractual penalties due to non-compliance with the contractual deadlines.
Near loss
A near loss is an incident that is recognized in time so that a loss can be avoided. Near losses are thus all incidents that can have undesirable consequences, but which have not occurred in the specific case.