A software company wants to make a gradual change from its traditional way of developing requirements to a more adaptive approach. A business analyst (BA) is hired to quantify the probability that…

The correct answer is C. Risk tolerance. Risk tolerance determines how much uncertainty the company is willing to accept in shifting to an adaptive approach. BABOK® Guide (Chapter 10.37 - Risk Analysis and Management)explains that organizations must evaluate their willingness to embrace changes and uncertainty in new…

Business Analysis Planning and Monitoring

Question

A software company wants to make a gradual change from its traditional way of developing requirements to a more adaptive approach. A business analyst (BA) is hired to quantify the probability that the solution will meet the company's needs and assess the relevant risks. Which element of risk assessment does the BA need to consider?

Options

AIssue management
BNegative impact to value
CRisk tolerance
DPositive evaluation results

How the community answered

(20 responses)

A
5% (1)
B
20% (4)
C
70% (14)
D
5% (1)

Explanation

Risk tolerance determines how much uncertainty the company is willing to accept in shifting to an adaptive approach. BABOK® Guide (Chapter 10.37 - Risk Analysis and Management)explains that organizations must evaluate their willingness to embrace changes and uncertainty in new methodologies. Issue management (Option A)addresses risks reactively rather than proactively. Negative impact to value (Option B)considers outcomes but not tolerance. Positive evaluation results (Option D)do not measure risk acceptance.

Topics

#risk tolerance#risk assessment#adaptive approach#solution risk

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