Assumptions Analysis

Correct Answer: Listing assumptions that could invalidate the project planning if proven false

The best answer focuses on listing assumptions that could invalidate project planning if proven false. This is crucial because: 1. It addresses the core purpose of risk assessment by identifying potential threats to project success 2. It helps teams proactively identify critical assumptions that need validation 3. It enables teams to prioritize which assumptions pose the greatest risks 4. It connects assumption management to actual project outcomes The other options are less effective because: - Creating a stakeholder perception matrix is more about stakeholder management than risk assessment - Developing alternative scenarios based on historical data is useful but doesn't address the core need of identifying current project assumptions - Establishing formal documentation procedures focuses on process rather than the actual identification and assessment of risks Effective risk assessment requires identifying those assumptions which, if incorrect, could derail the project. This makes it possible to monitor these critical assumptions and develop contingency plans if needed.

Correct Answer: A prioritized list of assumptions based on their potential impact on project objectives

In project risk management, the most critical output of assumptions analysis is a prioritized list of assumptions based on their potential impact on project objectives. This is correct because: 1. It enables project managers to focus on the most important assumptions that could affect project success 2. It helps in efficient resource allocation for risk monitoring 3. It facilitates proactive risk management by identifying which assumptions need the closest attention The other answers are incorrect because: - A complete documentation of historical validation records is useful but not the most critical output as it focuses on past data rather than current project impacts - A relationship matrix between assumptions and constraints is a supporting tool but doesn't help prioritize risk response efforts - An assessment of stability factors throughout the lifecycle is valuable but secondary to understanding potential impacts on objectives

Correct Answer: Sensitivity analysis of key assumptions for varying conditions

Sensitivity analysis is the most appropriate technique for assessing the impact of assumption failure on project objectives because: 1. It evaluates how different values of an independent variable affect a particular dependent variable under a given set of conditions 2. It helps determine which assumptions have the greatest potential impact on the project if they prove to be inaccurate 3. It allows for a systematic evaluation of how varying conditions might affect project outcomes The other options are less effective because: - Simply documenting assumptions in registers and charters does not analyze their potential impact - Creating scenarios based on historical data is useful but may not accurately reflect the specific impacts of current assumption failures - Probability distribution analysis focuses on likelihood rather than impact assessment and may overcomplicate the analysis of assumptions Sensitivity analysis provides the most practical and direct method for understanding how assumption failures could affect project objectives, enabling better risk management and contingency planning.