Crossword Genius

Blunder or incident is unsettling (12)

Ross

I believe the answer is:

indiscretion

'blunder' is the definition.
(thesaurus)

'or incident is unsettling' is the wordplay.
'unsettling' indicates anagramming the letters.
'or'+'incident'+'is'='orincidentis'
'orincidentis' with letters rearranged gives 'INDISCRETION'.

(Other definitions for indiscretion that I've seen before include "Imprudence" , "Slip" , "Tactless deed" , "Rashness" , "Tactless remark or action" .)

I've seen this clue in the Sydney Morning Herald.
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