Identifying Missing Words in Change Authority Sentence

A.

The missing word in the sentence is most likely "change budget" (option A). Here's why:

In the context of project management, a Change Authority is typically responsible for evaluating and approving changes to the project scope, schedule, or budget. When a change is requested, the Change Authority must assess its impact on the project and determine whether it should be approved, rejected, or deferred.

One factor that can influence the Change Authority's decision is the availability of funds to implement the change. If the project budget has already been exhausted, the Change Authority may need to find additional funds to finance the change.

That's where the concept of a "change budget" comes in. A change budget is a specific allocation of funds that is set aside to cover the costs of approved changes. It is separate from the main project budget, which is intended to cover the costs of the original scope of work.

By giving the Change Authority a change budget, the project sponsor or manager is effectively empowering them to finance new requirements as they arise. This can help to streamline the change management process and ensure that approved changes are implemented as quickly and efficiently as possible.

The other options (cost tolerance, risk budget, and scope tolerance) are not as directly related to the concept of financing new requirements. Cost tolerance refers to the degree to which the project budget can be exceeded before corrective action must be taken. Risk budget refers to the amount of money that is set aside to cover the costs of risk mitigation activities. Scope tolerance refers to the degree to which the project scope can be changed without triggering a formal change request. While these concepts are important in project management, they do not directly address the question of how new requirements will be financed.