Which technique is often employed in financial management to assess risks?

Cost-Benefit Analysis is a technique widely used in financial management to evaluate the potential risks and benefits associated with projects or investments. This method involves comparing the expected costs of an investment against its anticipated financial benefits. By calculating the net benefit, decision-makers can identify whether the project is worth pursuing.

In the context of risk assessment, Cost-Benefit Analysis helps organizations to understand the financial implications of potential uncertainties and to make informed decisions by quantifying the risks in terms of potential losses or gains. It encourages a thorough evaluation of both direct costs and indirect impacts, allowing for a more comprehensive understanding of the risks involved.

Other techniques, while useful in their own domains, do not focus primarily on risk assessment in the same manner. Break-even Analysis centers on understanding the level of sales needed to cover costs, Market Segmentation is about categorizing consumers to design targeted marketing strategies, and Employee Surveys gather insights from staff about workplace conditions, but they do not intrinsically analyze financial risks associated with investment decisions.