You are preparing the business case for a proposed solution in your organization. You need to identify several components for the business case including an assessment of the risks the solution may contain.
Which one of the following is the best definition of a risk as it pertains to the business case?
Risk is an uncertain event or condition that may have both positive and negative effects on the solution. This definition is comprehensive as it acknowledges the inherent uncertainty associated with risks and does not limit the consequences to only negative outcomes. It is critical to understand that risks can present both threats and opportunities, impacting the solution in various ways.
"potential problems that may have a negative impact on the solution" p. 235
also Assess Risks p.120 "risk is used for uncertain events that can produce negative outcomes"
BABOK v3 10.7.3.3 defines Risk is context of Business case as "Risks are potential problems that may have a negative impact on the solution". Hence, A is correct. Risks may have positive impacts on solution as well but BABOK specifically uses terminology 'Risk' in terms of negative impact and term 'opportunities' for positive impact. (Refer BABOK v3 6.3.2 important note) But, C is incorrect because a risk includes all uncertain events that can have negative impact on the solution including failure but does not only include events that can cause failure.
I go with C. This is because the question specifically mentioned as it pertains to ' Business Case' 10.7.3.3. The 3rd bullet point.