Which term is the measure of the expected loss from hazards, representing the combination of loss severity and probability?

• A. Hazard
• B. Risk Level
• C. Residual Risk
• D. Risk

Answer: (D)

The measure described is risk. It captures the expected loss from hazards by combining how severe a loss would be with how likely the hazard is to occur. Hazard refers to the potential source of harm, not the amount or probability of loss. Residual risk means the risk that remains after applying controls, and risk level is usually a qualitative rating rather than the actual expected loss value. For example, a hazard with high potential damage and a non-negligible chance creates higher risk than a hazard with small potential damage or very low probability.