The U.S. Department of Homeland Security (DHS) defines risk as ____________.

• A. an event with limited impact
• B. the probability of loss
• C. the potential for an unwanted outcome
• D. a measure of threat frequency

Answer: (C)

The main idea being tested is that risk is about what could go wrong — the potential for an unwanted outcome. This framing captures both the chance that something negative could happen and the consequences if it does. It isn’t limited to how often threats occur or to how large an impact might be in isolation.

Why this description fits best: it directly defines risk as the possibility of negative results, which encompasses both likelihood and harm. If there’s any chance of a threat causing damage or disruption, that constitutes risk because the outcome would be unwanted.

Why the other ideas don’t fit as well: focusing on an event with limited impact misses that risk can still exist because even smaller, unwanted results are part of the risk landscape. Saying risk is merely the probability of loss emphasizes likelihood but not the resulting outcome or its severity. Describing risk as a measure of threat frequency ignores what actually happens after a threat occurs—the potential harm or disruption that defines risk.