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Lesson 4.6 - Operational Incident Severity

Story

Not Every Problem Is a P1

A client complains about one delayed order. Another Dealer reports “system down” without verification. Meanwhile, a genuine widespread quote-source disconnect affects multiple symbols.

The Desk needs a common language for impact and urgency.

Severity Model

Severity Example Typical Response
P4 Isolated minor issue, no broad impact Record and monitor
P3 Limited symbol/client impact Investigate and notify assigned owner
P2 Material impact to a product/group/system function Cross-team escalation
P1 Widespread trading, connectivity or risk impact Immediate incident management

Response Sequence

Detect → Verify
Verify → Assess Scope
Scope → Classify Severity
Severity → Communicate Facts
Communicate → Verify Authorised Response Result
Verified Response → Monitor Recovery
Monitor → Document / Review

What to Report

Every initial incident update should include:

  • Time.
  • What is observed.
  • Affected systems/symbols/client scope.
  • Verified facts.
  • Current impact.
  • Action already taken.
  • Next update time.

Case Study

Widespread Quote-Source Disconnect

Observed:

  • Multiple symbols lose Quote Source B participation.
  • Bridge logs show a session disconnect.
  • Routing shifts to the approved backup route.
  • Spreads widen on affected symbols.
  • Current client impact is limited, but potential risk is material.

Likely classification:

P2 initially, with escalation if backup routing cannot maintain execution quality.

Common Mistakes

  • Calling a P1 before verification.
  • Understating broad impact because one screen looks normal.
  • Reporting opinions as facts.
  • Failing to specify impact and next action.
  • Closing an Incident without monitoring recovery.

Practical Training

Classify the case above using only the confirmed scope and impact. Write an initial update with the observation time, affected products, verified evidence, current impact, assigned owner and next update time. State what would cause the severity to be raised or lowered.

Summary

Severity classification helps Dealing Room respond proportionately. Good incident response begins with verified facts, scope and disciplined communication.

Completion Criteria

  • Can explain the key risk or operational objective of this lesson
  • Can identify the required systems, data, or evidence to review
  • Can describe the correct escalation or handling process
  • Can apply the lesson correctly in a supervised scenario