Our approach to priority and severity is explained in the MSF guidance and is fairly typical against industry standards.
Priority is how important something is to fix, while Severity is how severe the impact is on the system as a result of the bug
Severity would typically be reported by the tester, while priority would be set by the bug triage meeting.
We don't take a view that priority is more important than severity. These things are situationally specific. You are free to customize the reports to use different fields in order to reflect your specific requirements.
David, PM MSF
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