The CEO has approved development of a complex financial product funded by global investors who expect all risks to be identified quickly. What technique should the project manager use to identify risks?
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Correct answer: Strengths, weaknesses, opportunities, and threats (SWOT) analysis.
Why this is the answer
A SWOT analysis is a structured planning method that evaluates four elements: Strengths, Weaknesses, Opportunities, and Threats. It's particularly effective for identifying risks (threats) and potential opportunities early in a complex project with multiple stakeholders, like the one described. It encourages a comprehensive look at both internal and external factors. While analyzing shared risks is part of risk identification, SWOT provides a broader framework. Expert judgment is a valuable tool but is often used in conjunction with other techniques like SWOT, not as a standalone primary identification method for a complex product. A risk value assessment is a quantitative risk analysis technique used after risks have been identified, not for initial identification.
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