During what phase of project lifecycle is the level of risk and uncertainty is the lowest?

Projects are differ from ongoing business activities. A Project Life Cycle, is process comprised of different phases. The phases of a project comprised of four main phases, using the acronym C-D-E-F, namely the Conceptual Phase, Design (Development) Phase, Execution Phase and Finishing Phase. Each phase has specific requirements and objectives and each phase has uncertainty and risk which is vary from each other.

Projects risk and uncertainty typically involve due the uniqueness of the undertaking, complexity, use of limited resources, time and cost constraints.

The Project Life Cycle based on important characteristics to reduce uncertainty and risk which are :  (1) Cost and staffing levels that means, the concentration of cost and staffing are slight at the beginning, increasing toward the completion and decreasing rapidly toward the finishing of the project. (2) Adding value it means the ability to control costs and add value to the project’s output is at its greatest during the Conceptual Phase and at its least during the Finishing Phase. (3) Probability of project success it means at the start of the project, the chance of successfully completing the project is lowest; therefore, the risk and uncertainty are highest. The likelihood of successful completion generally gets progressively higher as the project continues. (4) Potential savings and cost to change; As a project progresses, the cost of alteration or addition increases. The earlier in the project life cycle that errors are identified, the cheaper they are to correct. As the project progresses, the ability to achieve savings diminishes. Similarly, the cost to change increases as the project progresses through the Project Life Cycle. (5) Ability of stakeholders’ influence; generally, at the start of the project, the stakeholders are able to influence the final characteristics of the project’s outcome and the final cost of the project.

So the level of uncertainty and risk is highest during the Conceptual and Development Phases and, as more information about the project is known, it will gradually be reduced through the Execution Phase. Unlike financial commitment, it is usually lower during the initial phases and much higher during the Execution Phase.

at closing phase risk and uncertainty is the lowest

The answer is Option E) Closing

Option-E Closing

 All risks and uncertainties are identified, analysed and solved before closing stage. Hence lowest level of risks and uncertainties.

 E: Closing all uncertainties became clear risk is the lowest