How is 'probability' defined in relation to risk assessment?

In the context of risk assessment, 'probability' is fundamentally about quantifying the likelihood that a specific risk event will occur. This aspect is crucial for risk management since it enables organizations to identify which risks are more likely to happen and subsequently prioritize their responses accordingly. Understanding the probability of a risk allows teams to allocate resources effectively and develop strategies to mitigate those risks before they materialize.

The other options address different components of risk management; for instance, focusing on the impact or severity of risks, which are essential for understanding the consequences should a risk occur, but they do not define 'probability'. Costs associated with risks are also important, but they denote a financial aspect rather than the likelihood of occurrence, which is central to assessing risk.