Severity levels are a classification system used to assess the impact of an issue or incident. They help organizations prioritize responses based on how critical a problem is. For example, a severity level 1 issue might indicate a complete system failure, while a severity level 3 issue could represent a minor bug that does not significantly affect operations. These levels are often used in fields like IT support, healthcare, and emergency management. By categorizing issues, teams can allocate resources effectively and ensure that the most serious problems are addressed promptly, improving overall efficiency and safety.