CCBA · Question #561
Market studies projected a 28% year-over-year growth for five (5) years for commercial vehicle loans. A company that provides lending for commercial vehicles wanted to keep up with industrydemand…
The correct answer is D. Flawed assumptions. The failure to meet ROI expectations suggests that assumptions made at the beginning of the project were flawed. The BABOK® Guide (Chapter 10.37 - Risk Analysis and Management)states that business assumptions must be tested against actual market conditions to avoid inaccurate
Question
Market studies projected a 28% year-over-year growth for five (5) years for commercial vehicle loans. A company that provides lending for commercial vehicles wanted to keep up with industrydemand; however, their applications were not capable of scaling to the increased demand for loan processing and billing. The company is deploying a new system to meet the demand. The project started five (5) years ago and cost $2 million USD. The project metrics are to be evaluated after five (5) years. The return on investment (ROI) for the project is calculated at 11%. The project sponsors are upset that the desired ROI for the project was not met. What was the root cause of this issue?
Options
- ADemand forecasting
- BCapability planning
- CRisk planning
- DFlawed assumptions
How the community answered
(43 responses)- A19% (8)
- B7% (3)
- C9% (4)
- D65% (28)
Explanation
The failure to meet ROI expectations suggests that assumptions made at the beginning of the project were flawed. The BABOK® Guide (Chapter 10.37 - Risk Analysis and Management)states that business assumptions must be tested against actual market conditions to avoid inaccurate
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