Section: Volume D
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 Incorrect Answers:
B: 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.
C: 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.
D: 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.

Explanation/Reference:
Explanation:
Here in this scenario alarm indicates the potential risk that the rising temperature of machine can cause, hence it is enacting as a risk indicator.
Risk indicators are metrics used to indicate risk thresholds, i.e., it gives indication when a risk level is approaching a high or unacceptable level of risk. The main objective of a risk indicator is to ensure tracking and reporting mechanisms that alert staff about the potential risks.
Incorrect Answers:
B: The first thing we must do in risk management is to identify the areas of the project where the risks can occur. This is termed as risk identification. Listing all the possible risks is proved to be very productive for the enterprise as we can cure them before it can occur. In risk identification both threats and opportunities are considered, as both carry some level of risk with them.
C: The temperature 430 degrees in scenario is the risk trigger. A risk trigger is a warning sign or condition that a risk event is about to happen. As in this scenario the 430-degree temperature is the indication of upcoming risks, hence 430 degree temperature is a risk trigger.
D: Risk response is the action taken to reduce the risk event occurrence. Hence here risk response is shutting off of machine.

Section: Volume B
Explanation:
Once the set of risk scenarios is defined, it can be used for risk analysis. In risk analysis, likelihood and impact of the scenarios are assessed. Important components of this assessment are the risk factors.
Incorrect Answers:
A: Risk mitigation is the latter step after analyzing risk.
B: Risk monitoring is the latter step after risk analysis and risk mitigation.
C: Risk analysis comes under risk management, therefore management is a generalized term, and is not the best answer for this question.