Which hazard severity category is characterized by significantly degraded mission capability or unit readiness?

The correct choice is characterized by significantly degraded mission capability or unit readiness. In the framework of Navy Operational Risk Management (ORM), hazards are classified into categories based on their severity and potential impact on operations.

Category II represents hazards that could lead to a significant reduction in mission effectiveness, which directly correlates to the statement about degraded mission capability or unit readiness. This category typically involves circumstances that may require more focused attention and risk management strategies compared to lower categories, as it poses substantial threats to operational success.

In summary, recognizing the implications of Category II is crucial for effectively managing risks and ensuring that mission objectives can be achieved while maintaining unit readiness. This understanding aids naval personnel in prioritizing resources and actions to mitigate risks associated with significant hazards.