What term refers to possible events that could cause harm or loss, or make it difficult to achieve objectives?

The term that refers to possible events that could cause harm or loss, or make it difficult to achieve objectives, is risk. In the context of ITIL and broader risk management practices, risk involves the potential for an event or series of events to negatively impact an organization’s ability to meet its goals or perform its key functions. It encompasses various dimensions, including potential threats to information security, service continuity, and compliance with regulations.

In ITIL 4, managing risk is crucial because it helps organizations identify, assess, and prioritize risks, ensuring that they are adequately prepared and can develop strategies to mitigate these risks. By understanding the potential risks, organizations can make informed decisions that safeguard their resources and objectives.

Other terms listed, such as utility, cost, and warranty, relate to different aspects of service management. Utility typically refers to the functionality or features that a service provides to meet the needs of stakeholders, while cost pertains to the financial implications of providing a service. Warranty ensures that a service will meet certain criteria, such as availability and performance. These concepts are important in service design and delivery but do not encompass the broader notion of events that could lead to negative outcomes, which is distinctively captured by the concept of risk.