Explanation: The business analysis approach is the set of processes, activities, tasks, deliverables, and techniques that are used to conduct business analysis. The business analysis approach should be aligned with the needs, preferences, and expectations of the stakeholders, as well as the characteristics and constraints of the project and the organization. The level of formality is one of the factors that influences the business analysis approach. It refers to the degree of rigor, detail, and documentation that is required for the business analysis work. The level of formality may vary depending on the type, size, complexity, and risk of the project, as well as the regulatory and governance requirements, the stakeholder involvement, and the organizational culture. In this scenario, the BA is dealing with two main stakeholders that have different levels of formality. The government agency is highly regulated and may require a formal approach that follows strict standards, policies, and procedures, and produces detailed and comprehensive documentation. The private company is less formal and may prefer a flexible and collaborative approach that allows for rapid changes, feedback, and experimentation, and produces minimal and concise documentation. Therefore, the BA’s strategy should be to develop consensus on a tailored approach for formality that balances the needs and expectations of both stakeholders, and that is suitable for the project context and objectives. The BA should facilitate a meeting with the representatives from each entity and discuss the advantages and disadvantages of different levels of formality, and how they can be adapted and customized to meet the project requirements and deliver value. The BA should also consider the impact of the level of formality on the other aspects of the business analysis approach, such as the planning, elicitation, analysis, validation, and management of the requirements and design specifications. The BA should seek to achieve a common understanding and agreement among the stakeholders on the level of formality and the business analysis approach. Option B is incorrect because using a formal approach to appeal to the government entity’s higher authority may not satisfy the needs and preferences of the private company, and may create conflict and dissatisfaction among the stakeholders. Option C is incorrect because employing the standard business analysis level of formality may not be appropriate or effective for the project and the organization, and may not address the specific needs and expectations of the stakeholders. Option D is incorrect because asking the government entity to accept a flexible collaborative approach may not comply with the regulatory and governance requirements, and may create resistance and distrust among the stakeholders. References: BABOK Guide v3, Chapter 2: Business Analysis Planning and Monitoring, Section 2.2: Plan Business Analysis Approach, p. 28-32; Chapter 10: Techniques, Section 10.6: Business Analysis Approach, p. 501-502.
