CBAP · Question #519
A business analyst (BA) on a project is in the process of validating requirements and finds that there is a high degree of uncertainty related 10 one of the assumptions being true. The BA adds the ass
The correct answer is D. Mitigation. When a risk-averse organization faces high uncertainty around an assumption, mitigation is the strategy that actively reduces the probability or impact of the risk without eliminating the activity.
Question
A business analyst (BA) on a project is in the process of validating requirements and finds that there is a high degree of uncertainty related 10 one of the assumptions being true. The BA adds the assumption to the risk register and performs a fun risk analysis to handle this situation. What type of strategy is in place if the organization is risk-averse?
Options
- AAcceptance
- BTransfer
- CAvoidance
- DMitigation
How the community answered
(23 responses)- A4% (1)
- B17% (4)
- C9% (2)
- D70% (16)
Why each option
When a risk-averse organization faces high uncertainty around an assumption, mitigation is the strategy that actively reduces the probability or impact of the risk without eliminating the activity.
Acceptance acknowledges a risk and takes no action to reduce it, which is inconsistent with a risk-averse organizational stance.
Transfer shifts the risk to a third party such as a vendor or insurer, but the scenario describes internal analysis and handling rather than any transfer mechanism.
Avoidance eliminates the risk entirely by changing or canceling the activity, which is a more extreme response than what the described analysis-and-handling approach represents.
Mitigation involves taking proactive steps to reduce the likelihood or impact of a risk, which directly aligns with a risk-averse organization's desire to minimize exposure while still proceeding with the project. Performing a full risk analysis is the standard precursor to identifying mitigation actions that lower the risk to an acceptable level. Unlike acceptance, which leaves the risk unaddressed, mitigation demonstrates active risk management consistent with a low risk tolerance.
Concept tested: Risk response strategies for risk-averse organizations
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