A project manager is creating a risk management plan for a complex infrastructure project. The sponsor asks why the project manager is spending so much time on this when the project hasn't even started execution. What is the BEST response?

Answer options:

Risk management is a mandatory requirement of the PMBOK Guide.

It is necessary to identify all risks before execution begins.

Early risk planning minimizes the impact of threats and maximizes opportunities, protecting project value.

The insurance company requires a detailed risk register for coverage.

How to approach this question

Choose the answer that links the process to Business Value.

C.Early risk planning minimizes the impact of threats and maximizes opportunities, protecting project value.✓ Correct

The PM must justify processes by linking them to value delivery. Risk management is about increasing the probability of success (Value).

Choosing A (Dogmatic) or B (Technically incorrect - risk is iterative).

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