In the FAIR model, risk is defined as:

In the FAIR model, risk is fundamentally defined as a measurement that quantifies both the probable frequency and the probable magnitude of future loss. This definition emphasizes that risk is not simply about the occurrence of an event but rather how often such events might happen and the potential impact or severity of those events when they do occur.

This understanding of risk is crucial in the context of making informed decisions regarding risk management and mitigation. By assessing both the likelihood and the impact, organizations can prioritize their resources effectively and identify which risks are most significant to address. This quantitative approach differentiates the FAIR framework from more qualitative assessments and aligns it with a more analytical method of evaluating risk.

While other options touch on aspects associated with risk, they do not encapsulate the comprehensive nature of risk measurement that the FAIR model advocates. For instance, some options refer to the occurrence of scenarios or possible losses without specifying the detailed quantitative evaluation of frequency and magnitude that are core to the FAIR framework. This distinction highlights why the measurement of probable frequency and magnitude is the cornerstone of risk assessment in the FAIR context.