![]() On the other hand, hazard only results in adverse effects.What kind of ESG data will the CSRD require companies to report? it may or may not result in a loss, because risk might turn out as gain. While risk has both positive and negative consequences, i.e. Both are different and should not be confused. Therefore, it would not be wrong to say that risk is likelihood while hazard is the likely outcome. ![]() However, to measure a hazard in degrees is not at all possible. One can easily measure the risk of something in degrees, high or low.Conversely, hazard pertains to the physical object, situation or setting, which poses a threat to life, property or any other thing. The risk is nothing but the probability that an action or inaction can pose life, property or any other thing to danger.Risk indicates an anticipation of harm, whereas hazard denotes the anticipated cause of harm.On the other hand, hazard implies something which is a root to harm, danger or loss. The term risk is described as a situation susceptible to harm, damage or loss.The following points are substantial so far as the difference between risk and hazard is concerned: It is the carelessness, which arises due to the presence of insurance. Morale Hazard: Morale hazard indicates an insured person’s attitude towards his/her belongings.These can be disloyalty or biases that raises the probability of loss. Moral Hazard: Moral hazard deals with the human characteristics which have the potential to affect the outcome.Physical Hazard: The hazard which is concerned with the physical condition that adds to the chances of loss.There are three types of hazards, discussed as under: In short, it is the set of conditions, which when combined with other conditions of the environment, can result in loss, damage, liability or any other negative consequence. It is the agent that poses a threat to people, property, environment, etc. Hazards have the capability to create or increase the effect of danger. These do not themselves cause harm or loss rather they have the potential to cause harm. ![]()
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