Tom is the project manager for his organization.
In his project he has recently finished the risk response planning.
He tells his manager that he will now need to update the cost and schedule baselines.
Why would the risk response planning cause Tom the need to update the cost and schedule baselines?
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A. B. C. D.A.
Option A is the correct answer. Risk response planning is a process in project management that involves identifying, analyzing, and responding to potential risks that may impact the project. Risk response planning involves developing strategies to reduce, avoid, transfer, or accept risks.
During the risk response planning process, the project team may identify new tasks or activities that need to be performed to mitigate the identified risks. Alternatively, the team may also decide to omit some tasks or activities that were originally planned because they are no longer necessary after implementing a risk response. These new or omitted tasks can impact the project's cost and schedule baselines.
Cost baseline refers to the approved budget for the project, while schedule baseline refers to the approved project schedule. Updating the cost and schedule baselines is necessary to reflect any changes caused by the new or omitted tasks in the risk response plan.
Option B is incorrect because risk responses are not designed to protect the time and investment of the project but rather to minimize the impact of risks on the project.
Option C is incorrect because baselines should be updated when necessary to reflect changes in the project plan. While it is true that baselines should be refined through versions, it is important to update them when necessary to keep them accurate and useful.
Option D is incorrect because while risk responses may indeed require time and money to implement, that fact alone does not necessarily mean that the cost and schedule baselines need to be updated. Instead, it is the impact of the risk response on the project plan that determines whether or not the baselines need to be updated.