Free PMI Project Management Professional (PMP) Practice Question

Reviewing historical data of similar past projects allows the project manager to anticipate potential budget challenges based on actual previous experiences and trends. This approach provides concrete data and insights that can guide budgeting more accurately than speculative or purely theoretical methods. Analyzing stakeholder expectations might reveal some budget implications but tends to be less comprehensive for budget planning than historical data review. Adjusting resource allocation based on current spending is reactive, not proactive. Lastly, conducting a new risk assessment itself is a broader activity and might not specifically address budget issues unless closely tied to financial analysis.