Which of the following methods involves the use of predictive or diagnostic analytical tool for exposing risk factors?
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A. B. C. D.D.
Cause-and-effect analysis involves the use of predictive or diagnostic analytical tool for exploring the root causes or factors that contribute to positive or negative effects or outcomes.
These tools also help in identifying potential risk.
Incorrect Answers: A: This analysis is not a method for exposing risk factors.
It is used for analyzing scenarios.
B: Sensitivity analysis is the quantitative risk analysis technique that: -> Assist in determination of risk factors that have the most potential impact -> Examines the extent to which the uncertainty of each element affects the object under consideration when all other uncertain elements are held at their baseline values C: Fault tree analysis (FIA) is a technique that provides a systematic description of the combination of possible occurrences in a system, which can result in an undesirable outcome.
It combines hardware failures and human failures.
The method that involves the use of predictive or diagnostic analytical tool for exposing risk factors is option A, Scenario Analysis.
Scenario Analysis is a risk management technique that involves the evaluation of potential future events or conditions that may affect an organization. This method uses predictive or diagnostic analytical tools to expose risk factors by considering a range of possible scenarios and analyzing their potential impact on the organization.
In Scenario Analysis, the risk management team identifies a range of possible scenarios that may have an impact on the organization. These scenarios are then analyzed using predictive or diagnostic tools to assess the likelihood of the scenario occurring, as well as the potential impact of the scenario on the organization.
By analyzing multiple scenarios, the risk management team can identify the key risk factors that may impact the organization and develop appropriate risk mitigation strategies to manage these risks.
Sensitivity analysis, fault tree analysis, and cause and effect analysis are other risk management techniques that are used to identify and manage risk factors. However, these methods do not involve the use of predictive or diagnostic analytical tools to expose risk factors in the same way that scenario analysis does.
Sensitivity analysis is a technique used to analyze how changes in one variable will affect the outcome of a decision. Fault tree analysis is a technique used to identify the root causes of failures or events that lead to an undesired outcome. Cause and effect analysis is a technique used to identify and analyze the underlying causes of a problem or event.