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IAI Actuarial Core Principles · Business Management · Mission, business strategy, teamwork and time management

A project team at a Chennai reinsurer must deliver a reserving analysis in four weeks. The team lead, Anita, lists tasks, estimates durations, and identifies which tasks cannot start until others finish, then focuses attention on the longest chain of dependent tasks. What is this chain called and why does it matter?

It is the critical path. This is the longest sequence of dependent tasks and sets the minimum project duration, so a delay to any task on it delays the whole project. Tasks outside it have slack and can slip without affecting the deadline.

  1. AThe critical path, because any delay to it delays the whole projectCorrect
  2. BThe slack path, because it can be delayed without affecting the project
  3. CThe contingency buffer, because it holds spare budget
  4. DThe milestone list, because it records completed deliverables
  5. The stakeholder map, because it shows who must approve each task

Explanation

The longest sequence of dependent tasks determines the minimum project duration. Delay on any task in it delays completion, so it receives priority monitoring. Tasks off this path have slack.

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