How does the bow-tie method contribute to risk assessment?

The correct answer highlights the primary function of the bow-tie method, which is to visually represent the complex interplay between potential risks and their consequences. By diagramming the causes of a specific risk on one side and the potential consequences on the other, the bow-tie method provides a clear and intuitive visualization.

This method effectively identifies preventive measures and controls that can be put in place to mitigate the identified risks. It allows teams to see not only what can go wrong (the causes) but also the impacts of those risks (the consequences), along with the necessary responses to either prevent the risks or minimize their effects. This holistic view supports informed decision-making and prioritizes the most effective strategies for risk management.

In contrast, the other options do not accurately capture the essence of what the bow-tie method achieves. While financial forecasts, stakeholder responsibilities, and summaries of risk management strategies are certainly important elements of an organization's overall risk management approach, they do not embody the specific functionality that the bow-tie method provides in terms of visualizing risk relationships and controls.