What is classified as a critical hazard severity under ORM?

In Operational Risk Management (ORM), critical hazard severity is defined as potential consequences that could lead to severe injury or loss of life, significant damage to property, or irreversible environmental impact. The scale used in ORM categorizes hazards from I to IV, where I represents the highest severity level.

The designation of critical hazard severity falls into the level marked by the second option. This classification indicates serious incidents that require immediate attention and stringent risk management measures to mitigate potential negative outcomes.

Understanding hazard severity is essential for ensuring that the right protocols and precautions are established and maintained, particularly in environments where safety is paramount. This knowledge allows for appropriate allocation of resources, training, and decision-making to effectively address and minimize risks associated with various operations.