A BA is performing 'Assess Risks' for a new expansion into a foreign market. The BA identifies that fluctuating exchange rates could reduce the project's ROI by 5%. If the organization decides to purchase a currency hedge to lock in rates, which risk treatment strategy are they employing?https://go-math-science.com/computing/software-engineering/requirements-engineering/cbap-certification-practice-exams/cbap-practice-exam-5/a-ba-is-performing-assess-risks-for-a-new-expansion-into-a-foreign-market-the-ba-identifies-that-fluctuating-exchange-rates-could-reduce-the-projects-roi-by-5-if-the-organization-decides-to-purchase-a-currency-hedge-to-lock-in-rates-which-risk-treatmenthttps://go-math-science.com/@@site-logo/logo-new.png
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A BA is performing 'Assess Risks' for a new expansion into a foreign market. The BA identifies that fluctuating exchange rates could reduce the project's ROI by 5%. If the organization decides to purchase a currency hedge to lock in rates, which risk treatment strategy are they employing?
publish date: 2026/04/20 20:08:38.076898 UTC
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Correct Answer
Transfer
Explanation
Using a financial instrument like a hedge or insurance to have another party bear the risk is a classic Transfer strategy.
