Final answer:
Organizations use Risk breakdown structures in conjunction with work breakdown structures to help management teams identify and analyze risk. A risk breakdown structure breaks down the identified risks in a project into smaller components to facilitate risk analysis.
Step-by-step explanation:
Organizations use Risk breakdown structures in conjunction with work breakdown structures to help management teams identify and eventually analyze risk. A risk breakdown structure (RBS) is a hierarchical representation of the identified risks in a project, and it breaks down the project's risks into smaller and more manageable components. By using an RBS, management teams can categorize risks, allocate resources and develop strategies to mitigate potential risks.
For example, let's say a construction company is working on a new building project. They might use an RBS to identify and analyze risks related to the project, such as delays in materials delivery, inclement weather, or errors in design plans. By breaking down these risks into smaller components, the management team can develop contingency plans and allocate resources accordingly to address each risk.
Other options mentioned, like contingency breakdown structures and scenario analysis, are not commonly used terms in risk management. Contingency breakdown structures are not a standard practice in risk management, and scenario analysis is a different technique used to analyze possible future scenarios, rather than specifically identifying and analyzing risks.