An HCP has several components. Formally, the regulatory agencies (usually USFWS, NMFS) issue Incidental Take Permits, for the loss of organisms or their habitat, in exchange for mitigation of that damage (e.g. by reserves, development of new habitat). Before issuing such permits, the agencies must assess the proposed action for 'take' (the damage done, or how many organisms are harmed) and whether such take constitutes a 'jeopardy' (essentially whether extinction risks increase).