Risk Assessment & Mitigation Flashcards
7 cards from real GMC 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 Assessment & Mitigation flashcards as text
A growth team discovers a 'peeking problem' in their A/B test. What risk does this represent?
Answer: Stopping a test early based on preliminary results inflates false positive rates
The peeking problem refers to checking interim results and stopping early, which dramatically increases the chance of declaring a false winner due to random variation.
Which risk is MOST associated with using 'vanity metrics' as primary KPIs in a growth strategy?
Answer: Making investment decisions based on metrics that look good but don't reflect business health
Vanity metrics like raw page views or social followers can grow while core business health declines, leading to misallocated resources and poor strategic decisions.
What mitigation strategy is recommended when a growth channel has high performance but also high policy violation risk (e.g., certain ad platforms)?
Answer: Maintain a parallel backup channel at readiness so you can switch quickly if the primary is suspended
Maintaining a parallel backup channel ensures business continuity when a primary channel faces sudden suspension or policy enforcement action.
A company runs a promotion offering a 90% discount to acquire users. After the promotion ends, most users churn. What growth risk concept does this illustrate?
Answer: Acquisition of discount-motivated users with no intrinsic product-market fit
Deep discounts attract users motivated by price rather than product value, resulting in high churn when pricing normalizes — a classic coupon-driven acquisition risk.
In scenario planning for growth risk, what is the purpose of building a 'downside case' model?
Answer: To understand minimum viable performance thresholds and ensure the business remains viable under adverse conditions
A downside case model quantifies how the business performs under adverse assumptions, ensuring resources and runway are sufficient even if key growth drivers underperform.
What is 'cannibalization risk' in the context of launching a new growth channel or product tier?
Answer: Risk that a new channel attracts users who would have converted through existing channels anyway, without adding net growth
Cannibalization risk occurs when a new channel or offering diverts demand from existing revenue streams rather than expanding total market reach.
A growth marketer is evaluating whether to expand into a new geographic market. Which risk assessment dimension is MOST commonly underweighted?
Answer: Regulatory and compliance requirements specific to that market
Regulatory and compliance requirements (data privacy laws, advertising restrictions, consumer protection rules) are frequently underweighted and can block or significantly delay market entry.