SoCal Movie Company produces movies at a studio in SouthernCalifornia. The risk manager decided to identify the range of potentialconsequences associated with various risks that the company faces. For example, if a severe earthquake occurred while the company wasfilming a movie, there could be deaths and injuries, destruction ofmovie sets, delays in production, costs associated with filming at analternative location, and loss of reputation and good will. The type ofanalysis performed by the risk manager is called...A. HAZOP analysis. B. SWOT analysis. C. Sensitivity analysis. D. Scenario analysis.

Option D; SCENARIO ANALYSIS.

Explanation:

Scenario analysis is a process of examining and evaluating possible events that could take place in the future by considering various feasible results or outcomes. It is one of the main forms of projection and does not try to show one exact picture of the future. Instead, it presents several alternative future developments.

This analysis helps experts (the risk manager) to better prepare to identify and manage the risk exposures through business decisions, risk mitigation efforts, and capital planning.

Since the risk manager decided to examine the future events that could take place considering the various risks the company faces, therefore, the type of analysis performed by the risk manager is called SCENARIO ANALYSIS.

The answer is option A) HAZOP Analysis

Explanation:

The analysis spelled out here is about potential natural and operational hazards and their corresponding consequences.

The operation that addresses it perfectly is HAZOP Analysis.

Hazard and Operability Analysis (HAZOP) is a structured and systematic technique for. system examination and risk management. In particular, HAZOP is often used as a. technique for identifying potential hazards in a system and identifying operability problems.

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