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In other terms issue is more generic than Incident. An incident respecting the ITIL lexical definition is “Any event that is not part of the standard operation of a service and that causes, or may cause, an interruption to, or a reduction in, the quality of that service.”
In the common use these two words are quite interchangeable (not to mention the common use of the word “problem”…), that’s why if you work in an ITIL context you should try to use the word “incident” every time it makes sense, avoiding too generic categorisations like “issue”.
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