What does RAC stand for in risk management?

• A. Risk Assessment Code
• B. Risk Analysis Certificate
• C. Risk Assessment Calculator
• D. Reliability Assessment Code

Answer: (A)

In risk management, a Risk Assessment Code is the labeling system used to summarize how risky a hazard is by combining how likely it is to occur with how severe the consequences would be. This single code makes it quick to see which risks need attention and what level of controls to put in place. For example, a hazard that could happen often and would cause major harm typically gets a high RAC, signaling urgent action, while a rare hazard with minor impact gets a low RAC. The other terms describe a document, a calculator tool, or a different field (reliability) and don’t represent the risk-level labeling system used to categorize and prioritize risks.