What does "root cause analysis" involve in risk management?

Root cause analysis in risk management focuses on investigating the underlying causes of adverse events. This method aims to identify the fundamental issues that lead to incidents, rather than merely addressing the symptoms or immediate factors involved. By discovering and understanding these core issues, organizations can develop strategies and interventions to prevent similar incidents from occurring in the future. This proactive approach is essential for improving safety and quality in various environments, particularly in healthcare and other high-risk settings.

The other options represent different aspects of risk management but do not capture the essence of root cause analysis. For instance, investigating external factors is important but does not delve into the intrinsic issues that may have contributed to the incident. Similarly, analyzing financial impacts addresses the consequences of adverse events rather than their origins, and determining best practices for future procedures focuses on improvement based on past learning rather than the thorough inquiry of what went wrong in the first place. Thus, option C is the most accurate representation of what root cause analysis entails in the context of risk management.