Business Analysis 101: Strategy Analysis - Assessing Risks and Feasibility

Assessing Risks and Feasibility – Study Guide
(Designed for ECBA, CCBA & CBAP candidates – also a handy on?the?job reference for PMs and new BAs)

What This Is

Assessing Risks and Feasibility is the analysis activity where the Business Analyst (BA) determines whether a proposed solution is realistic, affordable, and likely to deliver the expected value. It sits early in the Requirements Life Cycle (typically during the Strategy Analysis and Requirements Analysis & Design Definition knowledge areas) and feeds into the decision?making gate that either green?lights the initiative or sends it back for re?scoping.

Real?world example: A retail firm wants to replace its legacy CRM with a cloud?based platform. The BA evaluates the technical integration risk, the budget impact, regulatory compliance, and whether the organization has the skills to adopt the new system before any detailed requirements are written.

Key Terms & Techniques

• Risk Register – A living artifact (Strategy Analysis) that logs identified risks, their probability, impact, and mitigation actions.
• Risk Probability & Impact Matrix – A visual tool (Strategy Analysis) that plots risks on a 2?dimensional grid to prioritize mitigation effort.
• Feasibility Study – A high?level analysis (Strategy Analysis) that answers “Can we do it?” and “Should we do it?”; deliverable: Feasibility Report.
• Cost?Benefit Analysis (CBA) – Quantitative technique (Business Analysis Planning & Monitoring) that compares expected benefits against costs; output: CBA Spreadsheet.
• SWOT Analysis – Structured brainstorming (Strategy Analysis) of Strengths, Weaknesses, Opportunities, Threats; often a SWOT Diagram in the business case.
• Decision?Tree Analysis – Diagrammatic technique (Requirements Analysis & Design Definition) that maps alternative courses of action and their expected outcomes.
• Monte Carlo Simulation – Probabilistic modeling (Requirements Analysis & Design Definition) used when risk impacts are highly variable; output: Simulation Report.
• Stakeholder Risk Appetite Assessment – Interview/Survey (Elicitation & Collaboration) that captures how much risk each stakeholder is willing to accept; deliverable: Risk Appetite Matrix.
• Technical Feasibility Assessment – Review of existing architecture, interfaces, and technology constraints (Solution Evaluation); output: Technical Feasibility Document.
• Operational Feasibility Assessment – Evaluation of people, processes, and organizational readiness (Solution Evaluation); output: Operational Readiness Checklist.

Step?by?Step / Process Flow

1. Identify & Document Risks – Conduct stakeholder interviews, workshops, and document analysis to populate the Risk Register.
2. Determine Probability & Impact – Use the Probability?Impact Matrix (or Monte Carlo if data exists) to rank each risk.
3. Analyze Feasibility – Run a Feasibility Study that includes Technical, Operational, Economic, Legal, and Schedule feasibility; produce a Feasibility Report.
4. Quantify Benefits & Costs – Build a Cost?Benefit Analysis and, where appropriate, a Decision?Tree to compare alternatives.
5. Validate Findings with Stakeholders – Hold a review session; capture sign?offs on the Risk Register, Feasibility Report, and CBA.
6. Baseline & Communicate – Freeze the risk?baseline (add to the Business Case) and circulate the final artifacts to the governance board for go/no?go decision.

Common Mistakes

Certification Exam Tips

Quick Check Questions

1. Scenario: After a risk workshop, the team has 12 identified risks with varying likelihoods. Which technique should the BA use to decide which risks need immediate mitigation?
   Answer: Probability?Impact Matrix. It ranks risks by combining likelihood and impact, highlighting the high?priority items.

2. Scenario: The sponsor asks whether the new CRM can be delivered within the 12?month budget. Which deliverable gives the answer?
   Answer: Cost?Benefit Analysis (CBA) Report. It quantifies expected costs versus benefits and shows whether the budget is realistic.

3. Scenario: Stakeholders are concerned that the new system may not meet regulatory data?privacy rules. Which feasibility dimension should the BA assess?
   Answer: Legal Feasibility (part of the Feasibility Study). It evaluates compliance with laws and regulations.

Last?Minute Cram Sheet (10 One?Liners)

1. Strategy Analysis is the BABOK knowledge area where Risk Register and Feasibility Study are created.
2. Risk Register = Input for Solution Evaluation; Output for Business Case.
3. Probability?Impact Matrix = visual prioritization tool; high?probability & high?impact = “red” risks.
4. Feasibility Study covers Technical, Operational, Economic, Legal, Schedule dimensions.
5. Cost?Benefit Analysis must be quantitative for high?value projects; it feeds the Business Case.
6. SWOT is a qualitative technique; use it early to surface strategic risks.
7. Decision?Tree = “what?if” modeling; useful when multiple solution alternatives exist.
8. Monte Carlo Simulation = probabilistic risk modeling; produces a Simulation Report.
9. Stakeholder Risk Appetite Assessment-Risk Appetite Matrix-aligns mitigation with governance.
10. Exam trap: “Elicitation” is the activity; requirements are the output. The BA elicits information, not the requirements themselves.

Good luck – you’ve got the concepts, the techniques, and the exam?ready shortcuts! ?