IIBA Updated CBAP Exam Questions and Answers by irha

Mitigation is not a category of risk tolerance, but rather a strategy for reducing the probability or impact of a risk. Risk tolerance refers to the degree of uncertainty that a stakeholder is willing to accept in relation to the achievement of the project or solution objectives. According to the BABOK® Guide1, there are three categories of risk tolerance associated with the stakeholders: risk-averse, risk-neutral, and risk-seeking. These categories are based on how much risk the stakeholders can tolerate and how they perceive the potential rewards of taking risks.

• Risk-averse stakeholders prefer to avoid risks or minimize their exposure. They tend to choose safer options that have lower returns but higher certainty. They may require more analysis and evidence before making decisions or approving requirements.
• Risk-neutral stakeholders are indifferent to risks and rewards. They base their decisions on the expected value of the outcomes, regardless of the uncertainty involved. They may accept higher risks if they are compensated by higher returns, or lower risks if they are accompanied by lower returns.
• Risk-seeking stakeholders prefer to take risks or maximize their exposure. They tend to choose riskier options that have higher returns but lower certainty. They may be willing to accept lower levels of analysis and evidence before making decisions or approving requirements.

References:

• CBAP® Handbook, page 6, section 4. Review the Exam Blueprint, under Requirements Analysis and Design Definition, task 5.1: Prioritize Requirements
• BABOK® Guide, page 33, section 4.2.1: Prioritize Requirements
• Risk Tolerance - Overview, Factors, and Types of Tolerance
• Applying stakeholder risk tolerance strategies in business

 Scope creep is the change or expansion in the project scope that occurs without proper assessment and approval. It can result in cost overruns, delays, and client satisfaction issues. Scope creep can happen due to unclear or changing requirements, lack of stakeholder involvement, poor communication, or inadequate change control. To prevent scope creep, business analysts should define the project scope clearly, manage stakeholder expectations, document and prioritize requirements, and follow a change management process. References:

• Scope Creep: Definition, Examples & How To Prevent It - Forbes
• What is Scope Creep and 7 Ways to Avoid it [2023] • Asana
• What is the meaning of Scope Creep in Project Management?

 The management horizon is the time period over which the costs and benefits of a proposed solution are evaluated. It is also the point in time when the net present value of the solution becomes positive, meaning that the solution has recovered its initial investment and started to generate a profit. The management horizon helps to determine the feasibility and viability of a solution, as well as its alignment with the strategic goals of the organization. References:

• CBAP® Handbook, page 15, section 4.1.2.3
• BABOK® Guide, page 32, section 3.2.3
• How to Write a Business Case (Template Included), under Step 3: Calculate the Financials

 Influence and attitude are two factors that the business analyst must consider when conducting stakeholder analysis. Influence is the stakeholder’s ability to affect the project or the solution, either positively or negatively. Attitude is the stakeholder’s level of support or resistance to the change, either enthusiastic or reluctant. By assessing these two factors, the business analyst can determine the stakeholder’s impact and interest in the project, and plan the appropriate engagement and communication strategies for each stakeholder group. References:

• CBAP® Handbook, page 15, section 4.1.2.3
• BABOK® Guide, page 32, section 3.2.3
• How To Create a Stakeholder Analysis (With Example)
• How to Conduct a Thorough Stakeholder Analysis - CloudApp Blog … - Zight