What is the cost of a lost document? There are two components to the cost regardless of the document being either lost or just misplaced.
One component is the potential cost that a decision is made or action taken with incomplete information and there are negative consequences. For instance, if a contract is lost, one party to the agreement could take advantage of the other party. This situation might occur even if a replacement document could be obtained, but maybe not in a timely manner. Therefore, the employee makes a decision based on what they remembered. We call this the “Oh Sh&#” cost because it usually doesn’t get noticed until it is a surprise, and its usually a bad surprise.text