API 580 Risk Based Inspection Practice Test

In the context of risk, 'consequence' refers to the outcome of an event, particularly focusing on its potential negative impacts, especially regarding safety. This definition emphasizes the importance of understanding what happens as a result of a risk event occurring, including any harm to people, property, the environment, or overall system integrity. Assessing consequences allows organizations to evaluate the severity and impact of different risks, which is essential for prioritizing risk management efforts.

While probability deals with the likelihood of an event happening, which is critical in risk assessment, it does not encompass what happens after the event occurs. Identifying the initial cause of a risk or analyzing the history of past incidents provides vital context but does not directly define what a consequence is. Thus, focusing on the negative outcomes from risks allows for more effective strategies in managing and mitigating those risks.