What is the purpose of sensitivity analysis in the FAIR framework?

The purpose of sensitivity analysis in the FAIR framework is to understand how variations in input values can impact the overall risk assessment. This technique allows practitioners to determine which parameters have the most significant influence on the risk outcomes, thereby enabling more informed decision-making. By identifying and analyzing key variables, organizations can prioritize where to focus their risk management efforts, helping to resource allocations more effectively.

This process is critical because risk assessments often rely on estimates and assumptions. Sensitivity analysis helps in uncovering the relationships between different inputs and the final output of the risk model. Consequently, this leads to more robust and resilient risk management strategies.

While other options mention aspects relevant to risk management—like asset values, new risk events, and training programs—they do not capture the essence of sensitivity analysis as a tool for examining the effects of changing inputs on the risk assessment process. Understanding these dynamics is essential for refining approaches to risk mitigation and ensuring that resources are directed toward the most pressing vulnerabilities.