Which hazard severity category indicates degraded mission capability or unit readiness?

The correct answer indicates that Category III is associated with a significant risk level that can lead to degraded mission capability or unit readiness. In the context of Navy Operational Risk Management (ORM), Category III hazards represent situations where there is a risk of potential loss or significant disruption to the mission execution and effectiveness, which can ultimately compromise a unit's overall operational readiness. This categorization is critical as it helps teams prioritize their risk management efforts and allocate resources appropriately to mitigate these hazards.

Understanding hazard severity categories aids in proactive risk assessment and ensures that appropriate planning and precautions are implemented to maintain the highest levels of unit readiness and mission success. This framework allows Navy personnel to identify and address hazards that can directly impact their capabilities and readiness for operational tasks.