Risk Management & Mitigation Flashcards
7 cards from real CAP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Risk Management & Mitigation flashcards as text
During the business problem framing stage of a CAP analytics project, what is the primary purpose of a risk register?
Answer: To document identified risks, their likelihood, impact, and planned responses
A risk register catalogs identified risks with their probability, impact, and mitigation plans so they can be monitored throughout the project.
An analytics team discovers that a key data source may be discontinued mid-project. Transferring this risk would most likely involve which action?
Answer: Negotiating a contractual guarantee or SLA with the data vendor
Risk transfer shifts the consequence to a third party, typically via contracts, SLAs, or insurance.
Which situation best illustrates model risk in a deployed analytics solution?
Answer: A pricing model keeps being used after market conditions change, producing systematically biased recommendations
Model risk arises when a model is wrong or misused, such as applying it under conditions that no longer match its assumptions.
In a qualitative risk assessment, risks are typically prioritized using which two dimensions?
Answer: Probability of occurrence and magnitude of impact
Qualitative risk analysis ranks risks by combining their likelihood and potential impact, often in a probability-impact matrix.
A CAP-certified analyst chooses to proceed with a project despite a known small chance of minor data latency issues, documenting the decision. This is an example of which risk response?
Answer: Acceptance
Risk acceptance means acknowledging a risk and proceeding without active mitigation because its expected impact is tolerable.
Which practice most directly mitigates the risk of analytics results being misinterpreted by business stakeholders?
Answer: Clearly communicating assumptions, limitations, and uncertainty alongside the results
Transparent communication of assumptions, limitations, and uncertainty helps stakeholders interpret findings correctly.
What is the main risk of proceeding to model building before stakeholders agree on the analytics problem statement?
Answer: The team may solve the wrong problem, wasting resources and eroding stakeholder trust
Without an agreed problem statement, the analysis may address the wrong question, making the deliverable unusable regardless of technical quality.