What term describes the frequency, length of time, and percentage of people or assets subjected to a hazard?

The correct answer is "Exposure." This term specifically refers to the frequency, duration, and percentage of people or assets that are at risk of being affected by a particular hazard. Understanding exposure is crucial in the context of operational risk management, as it helps quantify how much of an entity is at risk, thereby allowing for more effective risk management strategies to be developed.

In contrast, the term risk refers to the potential for loss or harm and is typically expressed as a combination of both the likelihood of an occurrence and its potential impact. Risk Assessment Code (RAC) is a classification system used to prioritize risks and determine the level of required mitigation, while residual risk represents the level of risk that remains after risk control measures have been implemented. Therefore, while each of these terms plays a role in discussing operational risk, "Exposure" is the term that directly addresses the specifics of frequency and duration related to hazards.