Several techniques are available to help managers analyze risk. Three of the most common are best-case/worst-case analysis, what-if analysis, and simulation. Of these methods, what-if analysis the most powerful.

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Quizplus · Accepted Answer

While what-if analysis is a valuable technique for risk analysis, simulation is considered the most powerful because it allows for the creation of models that can simulate a wide range of scenarios and their potential outcomes. Best-case/worst-case analysis is a simpler approach that involves considering the best and worst possible outcomes for a given situation.

Several Techniques Are Available to Help Managers Analyze Risk