1. Revenue Loss from Release Delays
Formula: Loss_release = R_daily × D_release
- Loss_release represents the revenue loss due to release delays.
- R_daily represents the average revenue per day.
- D_release represents the average release delay in days.
2. QA Labor Cost Overruns
Formula: Cost_QA = C_QA × H_extra
- Cost_QA represents the QA labor cost overruns.
- C_QA represents the QA engineer cost per hour.
- H_extra represents the extra QA hours spent.
3. Support/Customer Churn Costs
Formula: Cost_support = C_support × T_unresolved
- Cost_support represents the support/customer churn costs.
- C_support represents the cost per support ticket.
- T_unresolved represents the number of unresolved tickets.
4. Regulatory/SLA Penalties
Formula: Cost_penalty = P_penalty
- Cost_penalty represents the regulatory/SLA penalties.
- P_penalty represents the total penalty amount.
Total Financial Risk Estimate
Formula: Total Risk = Loss_release + Cost_QA + Cost_support + Cost_penalty
Total Risk is the sum of all calculated financial risk components.
