An IS auditor finds that the cost of developing an application is now projected to significantly exceed the budget.
Which of the following is the GREATEST risk to communicate to senior management?
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A. B. C. D.B.
The greatest risk to communicate to senior management when the cost of developing an application is projected to exceed the budget is the inability to achieve expected benefits (Option D).
Explanation:
When developing an application, it is essential to have a budget in place to ensure that the project is completed within the allocated cost. However, if the cost of developing an application exceeds the budget, there are potential risks that can arise.
Option A, increased staff turnover, is not the greatest risk to communicate to senior management because while it can impact the project timeline and morale of the team, it does not directly affect the success of the project.
Option B, project abandonment, is a risk that could be communicated to senior management, but it is not the greatest risk. Abandoning the project would result in a complete waste of the resources invested, and the organization would not reap any benefits.
Option C, noncompliance with project methodology, is also a risk that could be communicated to senior management, but it does not directly impact the success of the project. It could lead to subpar results or delays in the project, but it is not the greatest risk.
Option D, the inability to achieve expected benefits, is the greatest risk to communicate to senior management because the purpose of developing an application is to provide benefits to the organization. If the application cannot achieve the expected benefits, the project would not be successful, and the organization would have wasted resources on an unsuccessful project. Additionally, if the expected benefits are not achieved, it could result in a loss of competitive advantage or reduced revenue for the organization.
Therefore, the greatest risk to communicate to senior management when the cost of developing an application is projected to exceed the budget is the inability to achieve expected benefits.