What is Fault Tree Analysis (FTA)?

Fault Tree Analysis (FTA) is a systematic and graphical approach used to determine the various ways that a system can fail. Specifically, it involves tracing the events that lead to a particular failure event, starting from the outcome and moving backwards to identify the root causes and contributing factors. The analysis allows for detailed examination of the relationships between different failures and their impact on system performance.

This method is particularly useful in risk management and safety engineering, as it helps organizations identify potential failure points, develop preventative measures, and make informed decisions to enhance system reliability. By understanding the causal pathways that can lead to failure, organizations can implement strategies to mitigate risks, making FTA a crucial tool in both engineering and regulatory contexts.

The other options, while relating to important aspects of business and market analysis, do not accurately define Fault Tree Analysis. They involve discussions of market behaviors, financial evaluations, or marketing strategies rather than the systematic investigation of failure modes that FTA entails.