What are the three elements that comprise risk?

The three elements that comprise risk are frequency, severity, and probability.

Frequency refers to how often a risk event is expected to occur within a given timeframe. Understanding frequency allows project managers and risk analysts to identify which risks are likely to happen more frequently and thus require more attention in terms of mitigation strategies.

Severity pertains to the impact or consequences of a risk event should it occur. It assesses the potential harm that could ensue as a result of the risk, allowing teams to prioritize risks based on their potential impact on project objectives and outcomes.

Probability indicates the likelihood that a risk will manifest. By estimating probability, organizations can gauge not just the frequency, but also the risk’s overall likelihood of occurring, which can help determine which risks to focus on and the resources that might need to be allocated for effective risk management.

Together, these three components provide a comprehensive understanding of risk, enabling more informed decision-making regarding risk management strategies. In contrast, other options include elements that do not thoroughly encapsulate the essence of risk assessment as effectively as frequency, severity, and probability do.