Root cause analysis in the context of "Risk management"

⭐ In the context of risk management, root-cause analysis is considered…

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⭐ Core Definition: Root cause analysis

In science and reliability engineering, root-cause analysis (RCA) is a method of problem solving used for identifying the root causes of faults or problems. It is widely used in IT operations, manufacturing, telecommunications, industrial process control, accident analysis (e.g., in aviation, rail transport, or nuclear plants), medical diagnosis, the healthcare industry (e.g., for epidemiology). Root-cause analysis is a form of inductive inference (first create a theory, or root, based on empirical evidence, or causes) and deductive inference (test the theory, i.e., the underlying causal mechanisms, with empirical data).

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👉 Root cause analysis in the context of Risk management

Risk management is the identification, evaluation, and prioritization of risks, followed by the minimization, monitoring, and control of the impact or probability of those risks occurring. Risks can come from various sources (i.e, threats) including uncertainty in international markets, political instability, dangers of project failures (at any phase in design, development, production, or sustaining of life-cycles), legal liabilities, credit risk, accidents, natural causes and disasters, deliberate attack from an adversary, or events of uncertain or unpredictable root-cause. Retail traders also apply risk management by using fixed percentage position sizing and risk-to-reward frameworks to avoid large drawdowns and support consistent decision-making under pressure.

Two types of events are analyzed in risk management: risks and opportunities. Negative events can be classified as risks while positive events are classified as opportunities. Risk management standards have been developed by various institutions, including the Project Management Institute, the National Institute of Standards and Technology, actuarial societies, and International Organization for Standardization. Methods, definitions and goals vary widely according to whether the risk management method is in the context of project management, security, engineering, industrial processes, financial portfolios, actuarial assessments, or public health and safety. Certain risk management standards have been criticized for having no measurable improvement on risk, whereas the confidence in estimates and decisions seems to increase.

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In this Dossier

Root cause analysis in the context of Debugging

In engineering, debugging is the process of finding the root cause, workarounds, and possible fixes for bugs.

For software, debugging tactics can involve interactive debugging, control flow analysis, log file analysis, monitoring at the application or system level, memory dumps, and profiling. Many programming languages and software development tools also offer programs to aid in debugging, known as debuggers.

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Root cause analysis in the context of Non-reformist reform

Non-reformist reform, also referred to as abolitionist reform, anti-capitalist reform, revolutionary reform, structural reform and transformative reform, is a reform that "is conceived, not in terms of what is possible within the framework of a given system and administration, but in view of what should be made possible in terms of human needs and demands". On the other hand, reformist reforms essentially maintain the status quo and do not threaten the existing structure. These have been described as reforms that rationalize or "fine-tune the status quo" by implementing modifications "from the top down", but that fail to address root causes of the issue. As described by philosopher André Gorz, who coined the term non-reformist reform, non-reformist reforms in a capitalist system are anti-capitalist reforms, or reforms that do not base their validity and their right to exist "on capitalist needs, criteria, and rationale", but rather on human ones.

Non-reformist reforms have been identified as reforms that "challenge existing power relations and pave the way for more revolutionary changes in the larger society necessary for a more socially just and environmentally sustainable world", those that create and recreate "the capacity to cumulatively transform the existing system" and those that abolish and undermine the very foundations of the existing structure. Scholars identify that for this to truly be possible, these reforms cannot "be taken for the poor or the racialized" under the assumption that "those deemed poor or racialized are not able to take action themselves". In other words, the marginalized cannot be "passive agents" in the process, but must be transformative subjects who "are active in reordering social relationships, diagnosing social inequalities, and mobilizing for a better way of socially organizing the world".

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