What increases project risk if the project team lacks it?

The correct answer, which refers to the lack of required technical expertise among the project team, highlights a critical factor in project risk management. When the project team does not possess the necessary technical skills and knowledge, the likelihood of miscommunication, errors, and inefficiencies increases significantly. Projects that rely on specific technical expertise to implement complex systems or solve intricate problems are particularly vulnerable. Without the right skills, project timelines can extend, budgets can be exceeded, and quality can suffer, ultimately leading to project failure.

Additionally, technical expertise is vital for effective decision-making and problem-solving throughout the project's lifecycle. Team members must understand not just their tasks, but also how their work interrelates with other components of the project. A lack of this knowledge can hinder the team's ability to adapt to challenges or changes, further exacerbating project risks.

Legacy applications, good equipment, and financial studies and plans are important aspects of project management but do not directly correlate to the competence and capability of the team in executing the project effectively. While having good equipment can facilitate operations and financial studies can guide budgetary decisions, the fundamental requirement remains that the team must have the expertise to utilize these resources effectively.