In operations risk management, how do hazard severity and probability relate to the overall risk rating?

In operations risk management, how do hazard severity and probability relate to the overall risk rating?

• A. Probability describes impact magnitude; severity describes likelihood; both determine overall risk rating.
• B. Severity is the sole factor in risk assessment.
• C. Severity describes impact magnitude; probability describes likelihood; both determine overall risk rating.
• D. Probability describes risk rating; severity describes controls.

Answer: (C)

In operations risk management, you assess two things: how bad the consequence would be if the hazard occurs (severity) and how likely the hazard is to occur (probability). The overall risk rating comes from combining these two dimensions. A highly severe outcome carries more weight, and a higher likelihood increases the chance that the risk is realized; together they produce the final risk level used to prioritize controls and mitigations. The option that correctly states that severity describes impact magnitude and probability describes likelihood, and that both determine the overall risk rating, matches this relationship. The other choices misstate the roles—either treating severity as the sole factor, swapping the definitions, or assigning risk rating to probability alone.

In operations risk management, you assess two things: how bad the consequence would be if the hazard occurs (severity) and how likely the hazard is to occur (probability). The overall risk rating comes from combining these two dimensions. A highly severe outcome carries more weight, and a higher likelihood increases the chance that the risk is realized; together they produce the final risk level used to prioritize controls and mitigations. The option that correctly states that severity describes impact magnitude and probability describes likelihood, and that both determine the overall risk rating, matches this relationship. The other choices misstate the roles—either treating severity as the sole factor, swapping the definitions, or assigning risk rating to probability alone.