IIBA
CCBA · Question #561
CCBA Question #561: Real Exam Question with Answer & Explanation
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
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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