What does 'root cause analysis' help to identify?

• A. The most frequent issues in business operations
• B. The underlying reasons for a problem or incident
• C. The number of incidents over time
• D. The costs associated with incidents

Answer: (B)

'Root cause analysis' is a systematic process used to identify the fundamental reasons behind a problem or incident. By delving into the underlying causes, this method goes beyond just addressing the symptoms of a problem, aiming to resolve the true source of issues. This approach is critical in risk management and preventing future occurrences, as it allows organizations to implement effective strategies that tackle the real issues rather than merely applying temporary fixes.

In contrast to identifying frequent issues, counting incidents, or calculating costs, root cause analysis focuses on understanding why problems happen in the first place, which is essential for long-term improvement and sustainability in operations.