Aboriginal Insurance Services

Hazard vs Risk – Understanding the Difference

Every business, organization, group, or community faces both hazards and risks. Oftentimes the words ‘hazard’ and ‘risk’ are interchanged. However a hazard and a risk are not the same thing. A hazard is something that poses a threat to life, health, property, or even the environment. A risk is the chance (big or small) that someone or something could be hurt or damaged by that hazard. It is important to understand the difference between the two so you can properly plan your risk management strategy.