What is delta in derivatives?

Could you please explain to me what the term 'delta' refers to in the context of derivatives trading? I understand it's a crucial concept in understanding the risk and potential profit of options and other derivative instruments, but I'm still unclear on the specifics. Is delta a measure of how sensitive the price of a derivative is to changes in the underlying asset? And how does this impact traders' decision-making processes? Thank you for your clarification.