In this lesson, Nick Palazzolo, CPA, elucidates the distinctions between security events and incidents, clearing up common confusion in these frequently used terms. He defines a security event as any observable occurrence in a system or network, which could range from a regular login to a firewall denial, emphasizing that not all events indicate a problem. On the flip side, he characterizes incidents as specific negative events that compromise the security of information systems, such as malware attacks or unauthorized data access, highlighting their serious implications. Through practical examples and a clear breakdown of each concept, Nick helps in gailessing the critical thinking needed to effectively monitor, analyze, and respond to security-related activities in a professional setting. He ensures the understanding of how routine monitoring of events can escalate to an incident response if anomalies or patterns suggest a security threat, thus preparing for adept handling of potential breaches.