What is the purpose of Stakeholder Analysis?

• A. To categorize stakeholders by influence and interest to tailor engagement
• B. To align stakeholders with project governance
• C. To assign tasks to team members
• D. To forecast project budget needs

Answer: (D)

Stakeholder analysis focuses on identifying who may affect or be affected by the project and understanding their levels of influence and interest so you can plan how to engage them effectively. By mapping stakeholders by their power and interest, you tailor communication, involvement, and engagement strategies to each group, ensuring the right people are consulted, informed, or involved at the right times. This helps secure buy-in, manage expectations, and reduce resistance, which are essential for project success.

Forecasting budget needs is a cost-management activity, not the primary aim of stakeholder analysis. While stakeholder input can influence budgeting, the main purpose of analyzing stakeholders is to guide engagement and communication, not to forecast financial resources.