GMC Risk Assessment & Mitigation 5

Question 1

A growth team discovers a 'peeking problem' in their A/B test. What risk does this represent?

Accepted Answer

Stopping a test early based on preliminary results inflates false positive rates

Answer

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.

Question 2

Which risk is MOST associated with using 'vanity metrics' as primary KPIs in a growth strategy?

Accepted Answer

Making investment decisions based on metrics that look good but don't reflect business health

Answer

Vanity metrics like raw page views or social followers can grow while core business health declines, leading to misallocated resources and poor strategic decisions.

Question 3

What mitigation strategy is recommended when a growth channel has high performance but also high policy violation risk (e.g., certain ad platforms)?

Accepted Answer

Maintain a parallel backup channel at readiness so you can switch quickly if the primary is suspended

Answer

Maintaining a parallel backup channel ensures business continuity when a primary channel faces sudden suspension or policy enforcement action.

Question 4

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?

Accepted Answer

Acquisition of discount-motivated users with no intrinsic product-market fit

Answer

Deep discounts attract users motivated by price rather than product value, resulting in high churn when pricing normalizes — a classic coupon-driven acquisition risk.

Question 5

In scenario planning for growth risk, what is the purpose of building a 'downside case' model?

Accepted Answer

To understand minimum viable performance thresholds and ensure the business remains viable under adverse conditions

Answer

A downside case model quantifies how the business performs under adverse assumptions, ensuring resources and runway are sufficient even if key growth drivers underperform.

(GMC) Growth Marketing Certification Practice Test

(GMC) Growth Marketing Certification Practice Test

GMC Risk Assessment & Mitigation 5