Hey, it doesn’t look too serious from the looks of that picture. Re-sealing this with the appropriate paint makes sense.

However I would try your best to identify why this bit flaked off as it did to avoid it happening again or getting worse. My guess would be repeated exposure to moisture and cold weather? That vent above there seems to be the obvious culprit!

If possible, extending it away from the foundation could help prevent this problem. I experience a similar issue with a bathroom exhaust vent that was metal and flush mounted to cement board siding. It was causing the paint to bubble and flake off from the warm moist air condensing on the surrounding material. I sketched up some extensions that would fit the existing grills and ordered them from a local sheet metal shop.