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 wants to run 10 simultaneous A/B tests on their homepage. What is the primary risk of this approach?
Answer: Interaction effects between tests contaminating results
Running multiple simultaneous tests risks interaction effects where one test's variant influences another's outcome, leading to unreliable data.
Which metric best indicates that a new growth channel is becoming over-reliant in your acquisition mix?
Answer: A single channel contributing over 50% of new users
When a single channel exceeds 50% of new user acquisition, the business faces concentration risk if that channel's performance deteriorates.
A SaaS company plans to triple its paid ad spend next quarter. What risk assessment step should come FIRST?
Answer: Audit current unit economics to confirm positive LTV:CAC ratio
Scaling spend before validating unit economics risks amplifying losses; confirming a healthy LTV:CAC ratio ensures the scaled spend is profitable.
What does 'novelty effect' risk mean in the context of growth experiments?
Answer: Early positive results are inflated because users respond to newness, not actual value
The novelty effect causes users to engage more with changes simply because they are new, making early experiment results misleadingly positive.
A growth marketer launches a viral referral program that goes unexpectedly mainstream. Which risk is MOST immediately critical to address?
Answer: Referral fraud and incentive abuse at scale
Viral referral programs that scale rapidly are highly vulnerable to fraud and incentive abuse, which can drain budget and distort acquisition metrics instantly.
In risk-adjusted growth planning, what is a 'sensitivity analysis' used for?
Answer: Modeling how key outcomes change when individual input assumptions vary
Sensitivity analysis tests how much a result (e.g., revenue) changes when a single input assumption (e.g., conversion rate) is altered, revealing which risks matter most.
Which mitigation strategy is most appropriate when a growth channel shows high variance in monthly performance?
Answer: Diversify the channel mix to reduce overall portfolio variance
Diversifying across multiple channels reduces the impact of any single channel's variance on overall growth performance.