Certified Business Analysis Professional (CBAP) — Question 402

You are preparing the business case for a proposed solution in your organization. You need to identify several components for the business case including an assessment of the risks the solution may contain.
Which one of the following is the best definition of a risk as it pertains to the business case?

Answer options

• A. Risk is an uncertain event or condition that may have both positive and negative affects on the solution.
• B. Risk is an uncertain event that can cause the organization to lose more monies than it invests in the solution.
• C. Risk is a potential event that can cause the solution to fail.
• D. Risks are threats to the organization's success.

Correct answer: A

Explanation

The correct answer is A because it encompasses the dual nature of risks, which can result in both advantageous and detrimental outcomes. Option B is too narrow, focusing solely on financial loss, while option C only highlights the possibility of failure without considering broader implications. Option D describes risks as threats, but does not capture the uncertainty aspect integral to the definition of risk.