What does the Risk Assessment Code (RAC) combine to determine risk?

The correct answer is based on the foundational principles of risk assessment. The Risk Assessment Code (RAC) is a systematic approach used to evaluate potential risks associated with a particular situation, decision, or process. To effectively determine the level of risk, the RAC combines two critical factors: probability and severity.

Probability refers to the likelihood that a particular risk will occur within a given timeframe or context. Severity, on the other hand, assesses the potential impact or consequences if that risk does indeed materialize. By integrating these two elements, the RAC provides a comprehensive understanding of risks, enabling decision-makers to prioritize and manage them accordingly.

This combination allows organizations to focus not only on how often a risk might happen but also on the seriousness of the outcomes should that risk occur, leading to more informed and effective risk management strategies.