Which term refers to the likelihood of loss or injury?

The term that refers to the likelihood of loss or injury is risk. In the context of insurance and financial planning, risk is the measure of the possibility that an adverse event will occur, resulting in potential loss or damage. Understanding risk is essential for insurers, as it helps them determine premium rates and the overall insurability of a client.

Liability pertains to legal responsibility for causing harm or loss to another party, but it does not specifically relate to the likelihood of that harm occurring. Peril is the specific cause of a loss, such as fire or theft, rather than the overall likelihood of loss, and exposure refers to the extent to which a person or property is subject to risk. While these terms are all related to the concept of risk management and insurance, the definition of risk itself captures the essence of the likelihood of experiencing a loss or injury.