CAPM (Certified Associate in Project Management) Practice Exam

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What does a SWOT analysis focus on?

List of identified risks and potential responses
Prioritization of risks based on probability and impact
Strengths, weaknesses, opportunities, and threats to prompt discussion on risks
Causal influences and time ordering of events

The correct answer is: Strengths, weaknesses, opportunities, and threats to prompt discussion on risks

A SWOT analysis focuses on identifying the Strengths, Weaknesses, Opportunities, and Threats related to a project or organization. It prompts discussions on these four key areas to gain a comprehensive understanding of the internal and external factors that can influence the project's success or failure. This analysis helps project managers to develop strategies that maximize strengths, minimize weaknesses, leverage opportunities, and mitigate threats effectively. Option A is incorrect because a SWOT analysis does not solely focus on risks and potential responses; it considers a broader spectrum of factors beyond just risks. Option B is incorrect because while prioritizing risks is an important aspect of project management, a SWOT analysis specifically concentrates on assessing internal strengths and weaknesses along with external opportunities and threats. Option D is incorrect as it refers to the concept of determining the cause-and-effect relationships and the sequence of events, which is not the primary focus of a SWOT analysis.