Which term is a measure of the expected loss from a given hazard or group of hazards; a combined expression of loss severity and probability?

Which term is a measure of the expected loss from a given hazard or group of hazards; a combined expression of loss severity and probability?

• A. Hazard
• B. Tactical Risk
• C. Accident Risk
• D. Risk

Answer: (D)

Risk is the measure of the expected loss from a hazard or group of hazards, combining both how likely something is to happen and how bad the loss would be. It’s often expressed as probability times consequence, giving a single value that reflects both likelihood and impact. For example, if a hazard could cause a $200,000 loss and has a 2% chance of occurring, the expected loss is $4,000, which represents the risk level. Hazards describe potential harm, but they don’t quantify how much loss to expect. Tactical risk and accident risk refer to more specific contexts, whereas risk provides the overall, integrated measure of expected loss from hazards.

Risk is the measure of the expected loss from a hazard or group of hazards, combining both how likely something is to happen and how bad the loss would be. It’s often expressed as probability times consequence, giving a single value that reflects both likelihood and impact. For example, if a hazard could cause a $200,000 loss and has a 2% chance of occurring, the expected loss is $4,000, which represents the risk level. Hazards describe potential harm, but they don’t quantify how much loss to expect. Tactical risk and accident risk refer to more specific contexts, whereas risk provides the overall, integrated measure of expected loss from hazards.