What is used to determine the hazard level of risks?

The hazard level of risks is assessed primarily through the combination of probability and severity. This approach is foundational in risk management, as it involves evaluating how likely a particular risk is to occur (probability) and the potential impact or damage it could cause if it were to materialize (severity).

By assessing both of these factors, organizations can prioritize risks effectively. For instance, a risk that has a high probability of occurring and also entails severe consequences would be ranked higher on the risk matrix, indicating that it requires immediate attention and mitigation strategies. This method enables companies to allocate resources efficiently and focus on the most critical risks that could affect their operations or safety.

In contrast, the other options might contribute to the risk management process in different ways but do not directly determine hazard levels. Cost and benefit analysis assesses the financial implications of potential solutions rather than identifying risk levels. While inspection frequency can give insights into the regularity of risk occurrence, it does not directly measure hazard severity. Employee feedback can bring awareness to potential risks but lacks the structured approach required to evaluate both the likelihood and impact consistently. Thus, probability and severity remain the core metrics for determining the hazard level of risks.