What is the term for the assessment of the potential consequences that can result from a hazard?

The correct answer is "Severity." This term specifically refers to the degree of harm or the potential consequences that may arise from encountering a hazard. Understanding severity is crucial in operational risk management, as it helps organizations evaluate how serious the impact of a specific hazard could be on operations, finances, personnel, and reputation.

In the context of risk management, knowing the severity allows for prioritization of risks based on their potential to cause damage. For instance, a hazard deemed to have high severity would typically require more robust controls and mitigation strategies compared to one that poses low severity.

While other terms like "impact," "magnitude," and "risk" relate to outcomes and influences associated with hazards, they do not specifically focus on the assessment of the consequences in the way that severity does. "Impact" often refers to the broader effects of a risk, while "magnitude" might describe the size or extent of the hazard itself without directly tying it to consequences. "Risk," on the other hand, is a more holistic term that encompasses both the likelihood of a hazard occurring and its potential consequences, but it does not focus exclusively on the assessment of those consequences.