ASQ Risk Management Credential
Risk correct answer Defined in ISO 31000 as the effect of uncertainty on objectives. Also
defined as the potential social, economical, or personal loss caused by an adversarial event.
Risk Event correct answer An event that will lead to harmful consequences.
Hazard correct answer Potential source of harm.
Consequence correct answer The outcome of an event.
Risk Management correct answer Defined in ISO 31000 as the identification, analysis,
evaluation, and prioritization of product or service risks, followed by a coordinated application
of resources to minimize, monitor, and control the probability or impact of risks or to maximize
opportunities created by risk. The fundamental purpose of risk management is to reduce
possible risks to acceptable levels before they occur.
Risk Likelihood correct answer The estimated probability that a risk will become an actual
outcome or event. Determined by looking at probability, frequency, and occurrence.
Occurrence correct answer The happening of a risk event.
Probability correct answer A value between 0 and 1 that is used to quantify the chance of a risk
event.
Rate correct answer A measure of frequency of risk events with respect to the population
events.
Risk Control correct answer The decision making used to reduce the identified risk to an
acceptable level and/or accept the risk.
