The best approach to determining the appropriate risk treatment for a materialized event is to conduct a thorough and systematic risk assessment. This involves identifying the actual impacts and consequences of the event, as well as the likelihood of recurrence or escalation.
C. Root cause analysis.
Root cause analysis is a method used to identify the underlying reason why an event occurred. Understanding the root cause of an incident or issue is crucial for determining the most effective risk treatment strategies. This analysis helps in addressing the fundamental issues that led to the risk materialization, allowing for more targeted and effective risk mitigation measures. While incident trend analysis, likelihood analysis, and impact analysis are important in understanding and managing risks, root cause analysis directly informs the development of appropriate treatment actions for specific events.
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