When you deploy broken code, it may cause an incident. Then you’ll have to declare an incident. And don’t forget to create an incident so customers can stay informed!
“Incident” can mean a bunch of things, and these meanings are only partly distinguishable through context. When the word “incident” is used ambiguously, confusion can emerge.
The effort to fix the problem
In many organizations, the organizational formalism around responding to a problem is called an “incident.” For example,
At 08:40 UTC, engineer Geordi La Forge declared an incident after observing high API latencies in production. The incident was led by Beverly Crusher, and it was resolved after 32 minutes.
We’ll call this usage an incident-effort. An incident-effort need not correspond to an outage. You can create one for any problem on which you want multiple sets of eyes. For example, if deployment to the staging environment is borked, or if disk utilization is growing too rapidly on a database server, you might declare an incident(-effort).
The public thread of communication
When stakeholders need to be informed of a problem – often, these stakeholders are customers – we’re expected to “create an incident.” This kind of “incident” (let’s call it an incident-post) is usually a post on a publicly-facing website, describing the problem and the current state of the response to it.
An incident-effort may exist without an incident-post. An incident-post may also exist without an incident-effort (for example, if an incident is used to communicate about a planned maintenance window).
The problem itself

Finally, there is the problem itself: that which is to be fixed, or communicated about.
There are many problems that don’t merit an incident-effort, let alone an incident-post. We usually just call such problems “bugs” or “risks.”
When someone says “We’ve had too many incidents this quarter,” they’re probably talking about problems that caused downtime. But they might be talking about incident-posts themselves, depending on how they’re looking at things. It pays to clarify.
Never being one to shy away from an opportunity to make a Venn Diagram, I’ll leave you with a few common phrases around incident management:

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