Which option correctly describes severity in risk management?

Which option correctly describes severity in risk management?

• A. Hazard: a rare and extreme event that can cause project failure.
• B. Severity: the impact of the risk on the project.
• C. Probability: degree to which the risk event is likely to occur.
• D. Frequency: the number of times a risk can impact the project.

Answer: (B)

Severity is the impact a risk would have on the project if it occurs. It focuses on the consequences—how big the disruption would be to scope, schedule, cost, quality, or safety—rather than how likely the event is. In risk assessment, you often consider both how likely a risk is to happen (probability) and how bad it would be if it did happen (severity) to gauge overall risk. The other terms describe different aspects: a hazard is a condition that could lead to risk, probability is the chance of the event occurring, and frequency refers to how often an event might impact the project, which isn’t the measure of severity.

Severity is the impact a risk would have on the project if it occurs. It focuses on the consequences—how big the disruption would be to scope, schedule, cost, quality, or safety—rather than how likely the event is. In risk assessment, you often consider both how likely a risk is to happen (probability) and how bad it would be if it did happen (severity) to gauge overall risk. The other terms describe different aspects: a hazard is a condition that could lead to risk, probability is the chance of the event occurring, and frequency refers to how often an event might impact the project, which isn’t the measure of severity.