Final answer:
The easiest and most commonly used technique for analyzing risks is probability analysis, which estimates the likelihood and potential impact of risks. This forms part of broader decision-making processes like cost/benefit analysis, where sacrifices and gains are weighed to make informed choices.
Step-by-step explanation:
The easiest and most commonly used technique for analyzing risks is probability analysis. This technique involves estimating the likelihood of different risks occurring and assessing their potential impact on project objectives. Probability analysis helps decision-makers understand the chances of various outcomes and to prepare accordingly. It is often used in conjunction with other risk analysis methods to provide a comprehensive understanding of project risks.
In terms of decision making, another process closely related to risk management is cost/benefit analysis. This involves comparing what one will sacrifice versus what one will gain from a particular decision, often encapsulated by marginal costs and benefits. A Cost Benefit Analysis, employing a T-shaped chart, allows for a visual representation where costs are listed on one side and benefits on the other. This helps in quantifying the trade-offs involved in any business decision by evaluating the advantages and sacrifices in terms of money, effort, time, and other resources.