The cause of a loss is called

A hazard refers to a condition or situation that increases the likelihood of a peril occurring. For instance, living in a flood-prone area is a hazard that heightens the risk of flood damage, but it does not directly cause a loss. Hazards serve as contributing factors rather than the direct causes of loss.

An exposure signifies the risk associated with a person or entity's assets to potential loss. It describes what is at risk but does not denote the cause of the loss itself. For example, an individual owning a house has exposure to various perils but does not identify a specific cause for any potential loss.

Risk is the overall possibility of loss occurring from various perils and hazards. While it encompasses the likelihood of loss, it is a broader term that does not pinpoint the specific cause of a loss, which is what a peril does. Risk management involves evaluating and mitigating these risks but does not define the cause.