Health and Safety & Risks

What is risk?

The word risk is used in a variety of contexts. But what does risk broadly mean from an insurance perspective? One definition is that risk is the likelihood of a hazard causing adverse effects as well as the impact of those effects. It is important to differentiate between risk and hazard. A hazard is a condition, situation or physical object that increases the likelihood and or severity of an event with an adverse effect. For example, a hazard could be a wet floor and the risk would be injury caused by slipping.

share Share on FacebookTweet about this on TwitterShare on Google+Share on LinkedInEmail this to someone