PMI Risk Management Professional Practice Exam

What analysis should a project manager conduct to forecast future project performance?

1. SWOT analysis

2. Cost-benefit analysis

3. Ongoing trend analysis

4. Benchmarking analysis

The correct answer is: Ongoing trend analysis

Ongoing trend analysis is crucial for forecasting future project performance as it involves analyzing historical data and identifying patterns over time. This method allows project managers to observe how specific metrics – such as costs, timelines, and resource allocation – have changed throughout the project lifecycle. By understanding these trends, project managers can make informed predictions about future performance, identify potential issues early, and adjust their plans accordingly to stay on track and meet project objectives. This approach is particularly beneficial in dynamic environments where actual performance can be tracked against planned performance and enables proactive decision-making based on factual data and insights. By focusing on ongoing trends, project managers can enhance their understanding of project dynamics and achieve better control over future outcomes.