Explanation:
Root Cause Analysis (RCA) looks beyond the immediate causes of events to identify the fundamental, underlying reasons (root causes) for operational risk events. While it applies to individual events, an effective RCA framework compares the results of multiple investigations to identify systemic issues or patterns leading to operational risk events, ensuring that corrective actions prevent recurrence. Option A is incorrect because RCA focuses on the root cause, not just the immediate cause.
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Q.27 Which of the following statements best describes the purpose of Root Cause Analysis?
A
To identify an immediate cause of a significant operational risk event.
B
To compare the results of multiple investigations and identify patterns leading to operational risk events.
C
To evaluate the impact of a near miss or incident on operational performance.
D
To support or challenge the initiatives proposed by the second line of defense.
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