Which of the following is the BEST method for discovering high-impact risk types?

Which of the following is the BEST method for discovering high-impact risk types?
A . Qualitative risk analysis
B . Delphi technique
C . Failure modes and effects analysis
D . Quantitative risk analysis

View Answer

Answer: C

Explanation:

Failure modes and effects analysis is used in discovering high-impact risk types.

FMEA:

– Is one of the tools used within the Six Sigma methodology to design and implement a robust process to:

– Identify failure modes

– Establish a risk priority so that corrective actions can be put in place to address and reduce the risk

– Helps in identifying and documenting where in the process the source of the failure impacts the (internal or external) customer

– Is used to determine failure modes and assess risk posed by the process and thus, to the enterprise as a whole’

Incorrect Answers:

A, D: These two are the methods of analyzing risk, but not specifically for high-impact risk types. Hence is not the best answer.

B: Delphi is a technique to identify potential risk. In this technique, the responses are gathered via a question: and their inputs are organized according to their contents. The collected responses are sent back to these experts for further input, addition, and comments. The final list of risks in the project is prepared after that. The participants in this technique are anonymous and therefore it helps prevent a person from unduly influencing the others in the group. The Delphi technique helps in reaching the consensus quickly.