API 580 Risk Based Inspection Practice Test 2025 – The All-in-One Guide to Exam Success!

The term that accurately refers to a thing or activity that has the potential for a consequence is "Hazard." A hazard represents a condition or situation that can lead to an undesirable outcome, such as harm or damage. In risk-based inspection and management, identifying hazards is a fundamental step because it allows organizations to assess the risks associated with those hazards.

While "Event" refers to a specific occurrence that may or may not have a consequence related to a hazard, and "Source" usually denotes the origin of a hazard rather than the hazard itself, "Risk" generally refers to the combination of the likelihood of a hazard occurring and the consequences that may arise from it. Thus, "Hazard" is the most fitting term regarding the potential for consequences.