CCBA · Question #545
A deployed loan product was funded with the expectation of prepayment risk reduction. Initially, key performance indicators (KPIs) would be to take similar loan prepayment rates over the previous…
The correct answer is C. Timing. Thetiming of performance measuresis critical becausemarket conditions and economic trends evolve over time. The BABOK® Guide (Chapter 7.6 - Define Performance Measures)states that KPIs must betimely and relevantto thecurrent business environmentto provide meaningful
Question
A deployed loan product was funded with the expectation of prepayment risk reduction. Initially, key performance indicators (KPIs) would be to take similar loan prepayment rates over the previous 10-year period and compare them with the new product. After implementation, the business analyst (BA) finds that the decade-old housing market is vastly different. Which of the following should the BA consider for validity of performance measures?
Options
- ASample size
- BFrequency
- CTiming
- DCurrency
How the community answered
(30 responses)- A3% (1)
- B3% (1)
- C80% (24)
- D13% (4)
Explanation
Thetiming of performance measuresis critical becausemarket conditions and economic trends evolve over time. The BABOK® Guide (Chapter 7.6 - Define Performance Measures)states that KPIs must betimely and relevantto thecurrent business environmentto provide meaningful
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