Human Resources Certification Institute (HRCI) Practice Exam

A business case can help management make better-quality decisions by doing which of the following?

1. Communicates how a plan will influence operational efficiencies

2. Provides multiple options for solving a business problem

3. Describes possible risks that could result from taking action

4. Quantitatively analyzes relevant HR trends

The correct answer is: Describes possible risks that could result from taking action

A business case indeed serves as a valuable tool for management by describing possible risks that could arise from taking action. Identifying and analyzing risks allows decision-makers to weigh the potential downsides alongside the benefits of a particular course of action. This information helps in ensuring that decisions are well-informed, considering not just the immediate benefits but also the long-term implications of those decisions. While providing insights into risks is crucial, it's also important to recognize that a comprehensive business case typically encompasses several other elements. For instance, communicating how a plan will influence operational efficiencies can guide management in understanding the direct impact on productivity and costs. Offering multiple options for solving a business problem encourages creativity and ensures that management considers various strategies before making a decision. Moreover, quantitatively analyzing relevant HR trends can provide data-driven insights that enhance the credibility of the recommendations put forth in the business case. In summary, identifying risks is a critical aspect of a business case because it equips management with the necessary information to make decisions that are not only advantageous but also strategic in managing potential challenges.