Which term describes the dollar amount of a specific loss?

The term that describes the dollar amount of a specific loss is severity. Severity refers to the financial impact of a loss event, quantifying how much it costs when a loss occurs. This could involve various types of financial losses, including property damage, business interruption, liability costs, and more. In risk management, understanding severity is critical as it helps organizations gauge the potential financial ramifications of risks they may face and assists in determining appropriate insurance coverage and risk mitigation strategies.

In contrast, frequency refers to how often losses occur, but it doesn't provide insight into the financial implications. A claim is a formal request for compensation due to a covered loss, which may involve discussions of both frequency and severity. Exposure pertains to the potential for loss or damage, often expressed in terms of risk entities that could be affected, but again it does not specifically address the monetary value of a loss. Hence, when discussing the dollar amount associated with a loss, severity is the most accurate term.