Because the management of a large corporation will often refer to macro economic forecasts when it plans for the future , it is probable that its belief in their soundness is significant.

A It is probable that its belief in their soundness is significant.
B It is probable that the soundness of their belief would be significant
C Believing their soundness is probably not significant
D The significance of their belief on the soundness is probable.
E Its belief in their soundness is probably significant.

THe OA is
E

But how can it be correct since "its" is a possessive pronoun nd possessive pronouns can refer back only only to possessive nouns.

Please explain .. thanks in advance