In a risk-based approach the risks identified may be used to :
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i. Determine the test technique to be employed
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ii. Determine the extent of testing to be carried out
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iii. Prioritize testing in an attempt to find critical defects as early as possible.
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iv. Determine the cost of the project
In a risk-based testing approach, identified risks directly inform the extent of testing to be performed. High-risk areas receive more thorough testing attention, while lower-risk components may be tested less extensively. This ensures that limited testing resources are allocated where they'll provide the most value in finding critical defects early.
In a risk-based testing approach, the identified risks are used to help decide how much testing effort a given area needs — that is, to determine the extent of testing to be carried out. This is a documented, correct use of risk information; ISTQB material also notes risk analysis can inform test technique choice and prioritization, but the extent-of-testing use singled out here is accurate. Determining overall project cost (option iv) is not a standard use of risk-based test analysis.