Your company is in the news as a result of an unfortunate action by one of your employees. The phones are ringing off the hook with customers wanting to cancel their contracts. What do we call this type of damage?

A.
Direct damage

B.
Indirect damage

Explanation:
Damage resulting from the occurrence of the above threats can be classified into two groups:
– direct damage;
– indirect damage.
An example of direct damage is theft. Theft has direct consequences on the business. Another example damage caused by the water from fire extinguishers,
Indirect damage is consequential loss that can occur. An example of indirect damage is being unable to meet a contract due to the IT infrastructure being destroyed by fire, or loss of goodwill by unintentional failure to fulfill contractual obligations