Which of the following is described in terms of consequence and likelihood?

According to the ISO 31000:2018 standard, risk analysis is the process used to comprehend the nature of risk and to determine the level of risk. This determination is a function of combining the potential consequences of an event and the likelihood of those consequences occurring. The "level of risk" is the magnitude of a risk, expressed as this combination of consequence and likelihood. This output is then used in the risk evaluation step to make decisions about risk treatment.

B. Level of crisis: A crisis is an event that has materialized; its level is described by its severity and impact, not the pre-event combination of likelihood and consequence.

C. Level of uncertainty: Uncertainty is a state of incomplete knowledge. Its level relates to the confidence in available information, not a combination of consequence and likelihood.

D. Level of cohesiveness: This term is unrelated to risk management, typically used in social psychology or materials science to describe how well things bond together.

1. ISO 31000:2018 - Risk management — Guidelines.

Clause 6.4.3 (Risk analysis): States, "Risk analysis involves a detailed consideration of uncertainties, risk sources, consequences, likelihood, events, scenarios, controls and their effectiveness... The level of risk is determined by combining consequences and their likelihood."

Clause 3.8 (Level of risk): Defines level of risk as the "magnitude of a risk or combination of risks, expressed in terms of the combination of consequences (3.6) and their likelihood (3.7)."

2. Purdy, G. (2010). ISO 31000:2009—Setting a new standard for risk management. Risk Analysis: An International Journal, 30(6), 881-886.

Page 884, Section "The Process": The article explains that the risk analysis step in the ISO 31000 process involves determining the consequences and their likelihood to establish a level of risk. (DOI: https://doi.org/10.1111/j.1539-6924.2010.01442.x)

3. University of Queensland, Courseware for RISK3001 - Risk Management.

Module 3: Risk Assessment: The course materials, based on ISO 31000, explicitly teach that risk analysis involves identifying consequences and likelihoods, and that the "level of risk is determined by combining these two factors." This is a foundational concept presented in the module.