IOSH Managing Safely Practice Test

How is risk defined in terms of its components?

1. Risk = Consequence + Severity

2. Risk = Likelihood + Impact

3. Risk = Likelihood x Consequence

4. Risk = Frequency x Severity

The correct answer is: Risk = Likelihood x Consequence

Risk is fundamentally defined as a function of both the likelihood of an event occurring and the consequences or impact that can result from that event. The correct formulation, which highlights this relationship, is that risk is calculated by multiplying the likelihood of an event by its consequence. This model clearly illustrates that risk is not merely about the occurrence of a hazard but also about the extent of the impact it can have should it occur. For example, a highly likely event with minimal consequences may pose a lower risk than a less likely event with severe consequences. Understanding risk in this way, as a product of likelihood and consequence, allows individuals and organizations to prioritize their risk management efforts, focus resources on high-risk scenarios, and implement effective control measures where they are most needed. The emphasis on multiplication indicates that both factors are critical; if either the likelihood or the consequence is zero, then the overall risk is zero, underscoring the interdependent nature of these components. This approach aids in comprehensively assessing potential risks within various contexts, leading to more effective health and safety management practices.