Top Answers to Business Analyst Interview Questions


The main job role of Business Analysts includes assessing the business needs of the company, understanding its integration with the latest technologies, and providing technical solutions to solve business issues. This set of Business Analyst interview questions aims to prepare you for real-world jobs. Here, you will prepare for some of the most frequently asked questions during Business Analyst job interviews. So, read on and help yourself with the most important Business Analyst interview questions:

Q1. What is the difference between a Data Analyst and a Business Analyst?
Q2. List the core competencies of a Business Analyst.
Q3. What is a feasibility study?
Q4. What are the different tools used in Business Analytics?
Q5. Explain the business analysis process flow.
Q6. How do you perform risk management in your project?
Q7. Differentiate between risk mitigation and risk avoidance.
Q8. What are the different phases of an IT project?
Q9. Differentiate between a software development life cycle and a project life cycle.
Q10. What are the tasks and responsibilities of a Project Manager?

This comprehensive blog on Business Analyst Interview Questions can be divided into three types as mentioned below:
1. Basic

2. Intermediate

3. Advanced

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Top Business Analyst Interview Questions and Answers

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Basic Interview Questions

1. What is the difference between a Data Analyst and a Business Analyst?

Sl.noData AnalystBusiness Analyst
1The role requires more problem-solving skills and data analysis skillsIt requires more of decision-making and data visualization skills
2It is more of an operational role in the organization.It is more of a strategic role in the organization.
3It requires knowledge of statistics, SQL, data mining, etc.Knowledge of Business Intelligence, Data Warehousing, Analytics, etc. is required for this role.

2. List the core competencies of a Business Analyst.

  1. Analytical thinking and decision-making
  2. Business and industry knowledge
  3. Business process management
  4. Technical and soft skills
  5. Problem solving and negotiation skills

3. What is a feasibility study?

The requirements and problems of a business/project should be studied and understood by a BA, and he/she should set a scope for the business problem. Feasibility study is identifying the possibility (success rate) of the proposed idea for a business problem. It helps identify new opportunities and focus on the project.

4. What are the different tools used in Business Analytics?

1. MS Office and SQL
2. Blueprint
3. Python and R
4. QlikView and Tableau
5. Axure

5. Explain the business analysis process flow.

1. Information gathering
2. Identify the key stakeholders
3. Identify the business objective
4. Determine the available options
5. Scope definition
6. Define the delivery plan
7. Define the requirements for a project
8. Implementation and evaluation

6. How do you perform risk management in your project?

A risk is defined as an uncertain event that causes threat to the existing business, which can cause impact on revenue or sometimes on the profits of a business. Risk-management techniques such as risk avoidance, reduction, transfer, and acceptance can be used. We have to identify, analyze, evaluate, and control the risk in a business.

Risk Management

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7. Differentiate between risk mitigation and risk avoidance.

Sl. no.Risk MitigationRisk Avoidance
1Risk mitigation is what to do when a risk occurs.Risk avoidance is what to do to avoid the risk.
2It reduces the probability of risk occurrence.It avoids the risk by eliminating the cause.
3It checks whether any impact occurs for the project/business.Impact of the threat occurrence is reduced to 0%.
4Cost is high in case any risk occurs.Cost is eliminated in risk avoidance.

8. What are the different phases of an IT project?

There are five phases in project management which include:
1. Project initiation
2. Project planning
3. Project execution
4. Project monitoring and control
5. Project closure

9. Differentiate between a software development life cycle and a project life cycle.

Sl. No.Software Development Life Cycle (SDLC)Project Life Cycle (PLC)
1Used for developing particular software productsUsed for developing a new product in the business
2Mostly involves single software across different phasesInvolves multiple software in a single customer scenario
3SDLC phases include requirement gathering, design, coding, documentation, operations, and maintenancePLC phases include Idea generation, screening, research, development, testing, and analysis

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10. What are the tasks and responsibilities of a Project Manager?

A Project Manager is responsible for taking decisions, controlling risks, and delivering the project on the stipulated time. His/her responsibilities include:

1. Defining scope
2. Resource planning
3. Cost and budget estimation
4. Risk analysis
5. Quality control

Intermediate Interview Questions

11. What do you mean by critical path analysis?

A project will involve a set of activities from start to finish. A critical path is the set of activities which includes the longest path in the whole project. So, a critical path analysis is a key component in reducing project timelines and controlling cost.

Critical Path Analysis

12. How does CATWOE help in business analysis and decision-making?

Customers, Actors, Transformation process, Worldview, Owners, and Environmental constraints (CATWOE) helps in making decisions ahead of time. It includes analyzing how those decisions will affect customers (C); who are involved as actors (A); what different transformation (T) processes are which might affect the system, global picture, and worldwide (W) issues; who is responsible/has ownership (O) for the business; and what the environmental (E) impacts will be of the project/business.

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13. List various components of strategy analysis.

In order to develop a strategic plan for an organization, the key components are:
1. Vision
2. Mission
3. Objectives
4. Strategies
5. Action plan

14. What is business modeling?

Business modeling is identifying the value proposition for a business and then building a step-by-step approach for operating the business. This step-by-step approach is known as business modeling. It includes vision, mission, and strategies to achieve the goals.

Business Modeling

15. List various software engineering processes.

1. Gathering of requirements
2. Analyzing
3. Designing
4. Implementing
5. Testing
6. Deploying in the business environment


16. Differentiate between Agile and Waterfall model.

Sl. No.Agile ModelWaterfall Model
1Flexible in natureStructured software development methodology
2Focuses on customer satisfaction, majorlyThe internal process does not require customer participation
3Flexible to changes in requirementRequirements must be clearly defined; changes are difficult to implement
4Incremental approachSequential design process
5Testing can be done in every phaseTesting is performed only in the final phase

17. What is RUP methodology?

Rational Unified Process (RUP) is a product application improvement method with numerous devices to help with coding the last product and assignments identified with this objective. RUP is an object-oriented approach that guarantees successful project management and top-notch software production.

18. What is RAD methodology?

Rapid Application Development (RAD) model is a kind of incremental model. The phases of a project are produced in parallel as individual projects. The developments in the project are timeboxed, delivered, and afterward assembled into a working model.

Rapid Application Development

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19. What are project deliverables?

Project deliverables are a set of measurable goods and services that are delivered to the end customer at the completion of a project. It is the outcome of the project.

20. List the components of the Requirements Work Plan.

1. Project description
2. Key issues
3. Deliverables
4. Goals and objectives
5. Strategy
6. Resources
7. Budget and time

Advanced Interview Questions

21. What is the purpose of the Requirement Traceability Matrix?

Requirement Traceability Matrix (RTM) is used to record all the requirements given by a client, so the purpose of RTM is to ensure that all of the mentioned requirements are met.


22. What is business process modeling?

Business process modeling is a part of business process management, which is used to improve the business process. It is the representation of an organization’s business process.

Business Process Modeling

23. List the benefits of business process modeling.

1. It is used to picture a clear understanding of the business processes.
2. It provides consistency and control over the processes of the project.
3. It is used to identify and eliminate errors and bottlenecks.
4. It gives a pathway for clear start and end for the process without hassles.

24. What is the use of UML?

Unified Modeling Language (UML) is a general-purpose, developmental modeling language that provides a standard way to visualize the system. It is used to:

1. Reason the system behavior
2. Detect and eliminate errors
3. Propose design plans to stakeholders

The below diagram demonstrates the use of UML:


25. How do you analyze performance metrics?

1. Make sure that your key deliverables are met.
2. The budget and time for the project should not be extended.
3. Quality deliverables are maintained.

26. What do you think is the scope of Business Analysts in the Agile methodology perspective?

With Agile methodology, Business Analysts act as a bridge between the development team and stakeholders. They act on key deliverables to prioritize and deliver the project in the stipulated time and budget.

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27. What is meant by scope creep?

Scope creep is defined as the uncontrolled or sudden changes or deviations in the project’s scope without changes in other resources of the project. It is due to the failure in proper monitoring, miscommunication, etc.

28. List the elicitation techniques in Business Analytics.

Elicitation is a practice of collecting requirements from end customers and stakeholders; it is a requirement-gathering process. Various techniques involved in this are:

1. Brainstorming
2. Document analysis
3. Focus group
4. Interface analysis
5. Interview
6. Observation
7. Prototyping
8. Requirements workshop
9. Reverse engineering
10. Survey

29. What are the initial steps involved in product development?

1. Market analysis
2. SWOT analysis
3. Personas
4. Competitor analysis
5. Identifying the strategic vision

30. What is BPMN gateway? What are its elements?

BPMN gateway is used for controlling the sequence of processes and flow of interaction, which is in a way a processing modeling component.

BPMN Gateway

The elements of BPMN gateway are:
1. Flow objects
2. Data connection objects
3. Swimlanes
4. Artifacts

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31. What are some of the steps that you can take to avoid scope creep?

Following steps can be very useful in avoiding scope creep:

  • Highly readable documentation about the project scope
  • Defining proper change management schemas
  • Accurate documentation of new requirements in logs
  • Avoiding the addition of a lot of extra features to existing entities

32. Differentiate between BRD and SRS in Business Analysis.

Business Requirements DocumentSystem Requirements Specification
High-level functional specification of softwareTechnical specification of software
Created by Business Analysts after client interactionCreated by Systems Architects with technical expertise
Derived from the client requirementDerived from BRS after client engagement

33. What is gap analysis?

Gap analysis is a widely used technique in Business Analysis that is used to understand and analyze the gaps that exist between the goal system and the existing system and their functionalities.

Gap Analysis

It can also be considered as a performance level assessment between the current functionalities and the goal functionalities.

34. What is requirement prioritization in Business Analysis?

Requirement prioritization, as the name suggests, is a structured process that is used to allocate the requirements based on the urgency with respect to many factors such as:

  • Project phase
  • Delivery schedule
  • Cost capping

35. What are the techniques used for requirement prioritization?

There are a variety of techniques used for requirement prioritization, and following are some of the widely used ones:

  • MoSCoW technique
  • 100-dollar method
  • Five whys
  • Kano analysis
  • Requirement ranking method

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