Failure Modes and Effects Analysis (FMEA) is a structured approach used to identify and evaluate potential failure modes within a system, process, or product. This method allows teams to systematically assess the ways in which failures can occur and their possible effects on the operation or outcome. By identifying these failure modes, organizations can prioritize risks based on their severity and likelihood, enabling proactive measures to mitigate or eliminate those risks before they lead to significant issues.
This proactive assessment is crucial in operational risk management, as it helps to enhance the reliability and safety of processes and systems. FMEA is particularly valuable because it encourages collaboration among team members to brainstorm potential failures, understand their impacts, and devise strategies for improvement, making it a comprehensive risk management tool.
The other options do not capture the essence of FMEA; they pertain to different aspects unrelated to the method of evaluating failures in processes. The focus on identifying and analyzing potential failures distinguishes FMEA as an important practice in operational risk management.