I ran WHFRP awhile back. It is a great game--would give D&D run for its money if was marketed better.
Anyway, yes, Chaos is everywhere.
In combat, you have more of a chance of getting horribly wounded than actually dying. When you get to zero health, that's when critical hits start coming into play. There are no "negative hitpoints/health." I had a main NPC who got both his hands chopped off in a duel with PC (peasant? I think) before he perished. The critical hit charts are almost on part with Rolemaster/MERP.
So, if you're not careful, you're character could become a cripple and almost unplayable.
In fact, combat is really something you don't want to get involved in. There's no experience for defeating opponents. Maybe they might have some cool stuff (gold, equipment, etc...) but usually it isn't worth the risk.
Also, magic items are EXTREMELY rare.
After playing mainly D&D for years and years, WHFRP is really a breath of fresh air.
The books are bit on the expensive side, though (but then again, all RPG books are that way now).