###### Answer: Risk level

A risk matrix is a matrix that is used during risk assessment to define the level of risk by considering the category of probability or likelihood against the category of consequence severity . This is a simple mechanism to increase visibility of risks and assist management decision making. Risk is the lack of certainty about the outcome of making a particular choice.

Failure mode effects and criticality analysis (FMECA) is an extension of failure mode and effects analysis (FMEA). FMEA is a bottom-up inductive analytical method which may be performed at either the functional or piece-part level. FMECA extends FMEA by including a criticality analysis which is used to chart the probability of failure modes against the severity of their consequences.

Failure mode and effects analysis (FMEA; often written with “failure modes” in plural) is the process of reviewing as many components assemblies and subsystems as possible to identify potential failure modes in a system and their causes and effects.For each component the failure modes and their resulting effects on the rest of the system are recorded in a specific FMEA worksheet.

Risk management is the identification evaluation and prioritization of risks (defined in ISO 31000 as the effect of uncertainty on objectives) followed by coordinated and economical application of resources to minimize monitor and control the probability or impact of unfortunate events or to maximize the realization of opportunities.

The residual risk is the amount of risk or danger associated with an action or event remaining after natural or inherent risks have been reduced by risk controls.. The general formula to calculate residual risk is = − where the general concept of risk is (threats × vulnerability) or alternatively ( severity × probability ).An example of residual risk is given by the use of …