How is risk primarily characterized?

Risk is primarily characterized by the combination of potential events and their associated consequences. This perspective emphasizes that risk arises from uncertainty about the occurrence of certain future events and the impact those events may have. By assessing both the likelihood of various adverse events and the severity of their consequences, organizations can devise strategies to mitigate risks effectively.

This approach enables a clearer understanding of risk than solely focusing on historical data or safety standards. It goes beyond simply looking at training effectiveness or previous accidents, which may not fully encapsulate all possible scenarios and their ramifications. Evaluating potential events alongside their consequences allows for a more comprehensive risk assessment framework, crucial for effective reliability and safety management in any organization.