What is an assessment of the potential consequences that can occur as a result of a hazard?

The assessment of the potential consequences that can occur as a result of a hazard is best defined as severity. In the context of Operational Risk Management (ORM), severity refers to the level of harm or damage that could result if a hazard were to occur. It evaluates how serious the outcome would be, whether it involves injury to personnel, damage to equipment, or environmental harm.

Understanding severity is crucial for effective risk management, as it helps prioritize hazards based on the potential consequences and guides decision-making regarding mitigation strategies. By assessing severity accurately, organizations can focus resources appropriately to address the most significant risks, ensuring safe operations.

In contrast, the other terms represent different aspects of risk assessment. Probability refers to the likelihood of a hazard occurring, risk encompasses both the likelihood of an event and its consequences (which includes severity), and impact can refer to the broader effects of an incident on operations or objectives. However, the specific term for the assessment of the potential consequences is severity.