What type of risk assessment is determined by evaluating both the probability of an event and its severity?

The correct choice identifies a risk assessment process that measures both the likelihood of an event occurring and its potential impact. When assessing risk, understanding these two dimensions—probability and severity—is crucial for prioritizing risks and determining appropriate response strategies. A Risk Assessment Code, in particular, typically utilizes a structured approach to categorize risks based on their severity and likelihood, leading to a clear understanding of risk management priorities.

This approach allows organizations to communicate risks effectively and allocate resources efficiently to mitigate the most significant threats. By calculating the overall risk level through these combined factors, teams can ensure they focus on critical and high-stakes incidents that may arise. The clear categorization provided by a Risk Assessment Code enhances the decision-making process, ensuring that strategies align with the level of risk faced.