In what portion of a project are risk and opportunities greatest and require intense planning and anticipation of risk events?
A.
Planning
B.
Closing
C.
Initiating
D.
Executing
Explanation:
During the early phases of the project, the greatest margin for risk and opportunity is prevalent. The closer a project moves to project completion, the lower the odds of negative risks and the higher the odds of completing the project.
What is initiation?
Initiation is a process group or stage that occurs at the beginning of the project. It determines the nature and scope of the development. If this stage is not performed well, it is unlikely that the project will be successful in meeting the business needs. The initiation stage should include a cohesive plan that encompasses the following areas.
Study analyzing the business needs in measurable goals
Review of the current operations
Conceptual design of the operation of the final product
Equipment and contracting requirements including an assessment of ‘long-lead’ items Financial analysis of the costs and benefits including a budget Stakeholder analysis, including users, and support personnel for the project Project charter including costs, tasks, deliverables, and schedule The key project controls needed here are an understanding of the business environment and making sure that all necessary controls are incorporated into the project. Any deficiencies should be reported and a recommendation should be made to fix them.
Answer option A is incorrect. Planning is the contingent response to the risk of the unknown in the project. Planning aims to define the work, the metrics for measurement, and anticipation of all risks within the project.
Answer option D is incorrect. Executing corresponds with the monitoring and controlling of risk events. As the project work is completing, negative risk events begin to diminish. Answer option B is incorrect. Closing has the least amount of risk exposure because the project work has been completed.
Reference: "Project Management Body of Knowledge (PMBOK Guide), Fourth Edition"