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Question 360

A very large insurer of General Liability and Property Damage insurance has an upward trend of increased claims over the past 5 years.

The Risk Control Area for that company has just completed a 12 month Pilot of a new improved Risk Control Site.

The purpose of the site is to help their customers manage their exposures and ideally prevent them from having claims. There were 100 customers that were part of the Pilot that represented 25 different industries. The business goals were to increase use of the site and provide tools to help customer awareness of their exposures, so that they may reduce existing exposures and ultimately reduce claims.

The sites Features were as follows:

✑ Improvements to the search engine to all customers to search for articles, tools and services on the site.

✑ A checklist function that allow customer to create their own unique Checklists or utilize a sample provided by ABC company to use daily, weekly etc for an area of their facility.

✑ A promotion feature "" where Risk preventing Articles, and tools on the site are marketed toward a customer.

✑ A profile section allowing for Customer Name, Address and contact Phone number.

After the 12 months pilot, the business sponsor received an assessment of what was working and what was not. The Assessment of the pilot revealed overall site activity had significantly increased, however only 5% of the time the promotions were viewed. And the most shocking was that total claims increased by nearly

20% for these 100 customers during the pilot period. The business sponsor was perplexed as he had an expectation of reduced claims and at least for 30% viewing of promotions since the project team had spend a lot of careful time and effort on this feature. A BA was assigned to do further analysis regarding the low use of the promotions and why claims were not being reduced.

Regarding the use of promotion the BA looked into other similar companies to see what they did differently to get their customer to look at their promotions. The

BA found that similar companies had promotions that targeted the industry the customer was in so it was more relevant to them and they were more interested to view the promotion. In addition the BA sent out survey to all 100 pilot customers asking probing questions about what they thought of the site and if they felt it had decreased their exposure to risk sufficiently. The Survey responses came back with raving positive comments and providing examples of how the site had been helping in the reduction of claims from the customer's perspective. In addition the survey also revealed insight that the customers found the promotion often irrelevant to their industry.

The BA asked for a dump of all documentation of the 100 claims that were filed over the 12 month pilot period. The BA found the nearly 90% of the claim field were all in one region of the country and were all for property damage related to several severe winter storms in the region and the claims were nearly all unavoidable by the customers. The BA brought all this analysis back to the business sponsor and made the recommendation to the business sponsor to require the customer to select 1 of 25 industries in their profile. This would in turn allow for the ability to show industry specific promotions and promote search results relative to a customer's industry to be stored at the top giving the customer a more personalized experience.

What was the business sponsor looking to validate about the use of promotions?

    Correct Answer: A

    The business sponsor was looking to validate the performance variance of the use of promotions. This variance is the difference between the expected and actual performance. The sponsor expected at least 30% of promotions to be viewed, but only 5% were. This difference represents a significant variance that the sponsor aimed to understand and address.

Discussion
siliconvalleykamOption: A

Performance Variance

AtzewineOption: B

The accuracy of performance measures is essential to the ''validity'' of their analysis. The question is: What was the business sponsor looking to ''validate'' about the use of promotions? So answer is B. Babok v3 page 172

moririnOption: A

A. Performance Variances: The difference between expected and actual performance

Group02Option: A

The difference between expected and actual performance represents a variance that is considered when analyzing solution performance. pg182

786NB786Option: A

A- performance measures - especially because it says he 'expected' 30% initially

cc2104Option: A

8.2.4.5 Performance Variances The difference between expected and actual performance represents a variance that is considered when analyzing solution performance.

Farooq_95Option: A

Performance variance is the difference between the actual and expected results of a business activity or process. In this case, the business sponsor expected that the promotions would be viewed by at least 30% of the customers and that they would help reduce claims. However, the actual results showed that only 5% of the customers viewed the promotions and that claims increased by 20%. The business sponsor wanted to understand the reasons for this discrepancy and how to improve the effectiveness of the promotions.

RabbitsfootOption: A

option A or B could be valid choices for what the business sponsor was looking to validate about the use of promotions. However, based on the specific concern raised in the scenario about the low viewing rate of promotions and the discrepancy between expected and actual performance (only 5% viewing of promotions compared to an expectation of 30%), "Performance Variance" (option A) may be the more directly applicable choice in this case.

Jules_CmrfrdOption: B

Accuracy as per BABOK p. 172

Dillon91Option: A

pb 172: Performance Variances The difference between expected and actual performance represents a variance that is considered when analyzing solution performance. Root cause analysis may be necessary to determine the underlying causes of significant variances within a solution. Recommendations of how to improve performance and reduce any variances are made in the task Recommend Actions to Increase Solution Value (p. 182)

paoloscottOption: A

Performance Variance

LaDebzOption: A

Performance Variance