Identification and prioritization of business risk enables project managers to:
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A. B. C. D.C.
Identification and prioritization of risk allows project managers to focus more attention on areas of greater importance and impact.
It will not reduce the overall amount of slack time, facilitate establishing implementation milestones or allow a critical path to be completed any sooner.
Identification and prioritization of business risks is an essential step for any project manager to ensure that the project meets its objectives and does not encounter unforeseen obstacles. By identifying potential risks and evaluating their potential impact, project managers can take proactive steps to manage these risks and minimize their impact on the project.
Option A, "establish implementation milestones," is not the correct answer because identification and prioritization of business risks may lead to the development of contingency plans or mitigation strategies, but it is not directly related to establishing implementation milestones.
Option B, "reduce the overall amount of slack time," is also not the correct answer because slack time refers to the amount of time that a project can be delayed without affecting the overall completion time. Risk management is not focused on reducing slack time but rather on identifying potential risks and developing strategies to mitigate or avoid them.
Option C, "address areas with most significance," is the correct answer. By prioritizing risks, project managers can focus their attention on the areas that have the most significant impact on the project's success. This enables project managers to allocate resources appropriately, establish priorities, and develop contingency plans to address the most critical risks.
Option D, "accelerate completion of critical paths," is not the correct answer because critical paths refer to the sequence of tasks that must be completed on time for the project to meet its objectives. Risk management may involve developing contingency plans to manage risks that impact critical paths, but it is not focused on accelerating the completion of critical paths.
In summary, the identification and prioritization of business risks enables project managers to address the areas with the most significance, allocate resources appropriately, establish priorities, and develop contingency plans to manage the most critical risks.