Estimation of loss through Iceberg model:
During Execution of any project the losses are of two types
direct/tangible and indirect/intangible.
Direct losses can be accounted easily. However, Indirect
losses are difficult to compute.
Direct losses can be proved easily. However, Indirect losses
are difficult to prove.
Direct losses such as Expenditure incurred due to other
party to the contract and Indirect losses such as loss of reputation, loss of
future customer etc.
Like Iceberg: Direct losses are only 10% of total losses,
however the indirect losses are 90% of total losses.
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