Which risk level indicates a frequent or likely probability of catastrophic loss?

The designation of "extremely high" risk is used to indicate a scenario where there is a frequent or likely probability of catastrophic loss. This level of risk suggests that the potential consequences of an event could be severe and that such events are expected to occur regularly. In risk management, extremely high risk necessitates immediate and proactive measures to mitigate the potential for loss, as the implications can be significant and far-reaching.

Other risk levels, such as high, moderate, and low, indicate varying degrees of potential impact and likelihood of adverse events but do not convey the same urgency or likelihood of catastrophic outcomes. High risk might imply substantial consequences, but the frequency or likelihood of occurrence is not at the same critical level as extremely high. Conversely, moderate and low risk typically indicate lesser probabilities and potential impacts, emphasizing the need for different strategies in risk management corresponding to their specific profiles.