Certification of Capability in Business Analysis (CCBA) — Question 195

A long-established company selling ice cream is entering its crucial sales period leading up to summer. Based on the company's risk tolerance, a business analyst (BA) has advised against replacing the most popular flavors with new untested flavors. What is the company's attitude toward risk, as assessed by the BA?

Answer options

Correct answer: D

Explanation

The company is considered risk-averse because it prefers to maintain its popular flavors rather than experiment with new, untested ones, indicating a cautious approach to risk. In contrast, risk-seeking would imply a willingness to embrace new flavors despite potential losses, while risk-neutral would suggest indifference to the outcomes. Risk-optimizing would indicate a strategy focused on maximizing potential benefits, which does not align with the company's current strategy.