Certification of Capability in Business Analysis (CCBA) — Question 181

A business analyst (BA) working with a large insurance corporation interviewed an industry thought leader who predicted that many of the regulations currently imposed by the government will change very soon. The BA communicated the observation to the leadership team of the organization because many on-going projects were triggered by those regulations. The leadership team unanimously decided to cancel the initiatives that were driven by the government regulations. What is the corporation's attitude towards risk?

Answer options

Correct answer: B

Explanation

The corporation's decision to cancel initiatives based on potential regulatory changes indicates a cautious approach, characteristic of being risk averse. They are prioritizing stability and minimizing exposure to uncertainties rather than pursuing potentially beneficial risks. In contrast, risk neutral, risk tolerant, and risk seeking attitudes would involve either accepting or embracing risks rather than avoiding them.