You are the risk official at Bluewell Inc. There are some risks that are posing threat on your
enterprise. You are measuring exposure of those risk factors, which has the highest potential, by
examining 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. Which type of
analysis you are performing?

A.
Sensitivity analysis

B.
Fault tree analysis

C.
Cause-and-effect analysis

D.
Scenario analysis

Explanation:

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
Answer B is incorrect. Fault tree analysis provides a systematic description of the combination of
possible undesirable occurrences in a system. It does not measure the extent of uncertainty.
Answer C is incorrect. 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, and not the extent of uncertainty.
Answer D is incorrect. Scenario analysis provides ability to see a range of values across several
scenarios to identify risk in specific situation. It provides ability to identify those inputs which will
provide the greatest level of uncertainty. But it plays no role in determining the extent of
uncertainty.