Fault tree analysis (FTA) is a technique used in probabilistic risk assessment to model and analyze failure processes in engineering systems. The key steps in FTA include identifying an undesired event, constructing a fault tree with that event at the top using logic gates, and evaluating the tree to calculate failure probabilities and system reliability. FTA can help understand logic leading to failures, prioritize contributors, prevent failures through proactive measures, monitor system performance, and optimize resource usage in system design and diagnosis.