Which of the following statements accurately describes the connection between a strengths-weaknesses-opportunities-threats (SWOT) analysis and...

A SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis is a strategic planning tool used to assess both internal and external factors that may impact a construction project. It provides a structured method for identifying risks and opportunities, which is essential for strategic risk management in construction projects.

Balanced Approach to Risk Management

A SWOT analysis systematically examines internal factors (strengths and weaknesses) and external factors (opportunities and threats).

Strengths and weaknesses focus on internal capabilities, such as project team expertise, resource availability, and technological competence.

Opportunities and threats examine external influences, such as market trends, regulatory changes, and environmental factors​.

Strategic Risk Identification and Mitigation

The risk management framework in construction emphasizes proactive risk identification and response planning.

By addressing both positive and negative elements, a SWOT analysis ensures that risk management strategies are comprehensive and not solely focused on threats​.

Application in Construction Projects

Construction projects involve numerous uncertainties, including financial, legal, environmental, and technical risks.

A SWOT analysis allows project managers to align strategic decisions with the overall risk management plan, ensuring that both risks and opportunities are considered equally​.

Alignment with Industry Standards and Best Practices

ASQ and DOE construction quality management frameworks emphasize structured risk assessment tools like SWOT analysis to optimize project outcomes.

The success of a risk management plan depends on identifying areas where the project can leverage strengths and opportunities while minimizing weaknesses and threats​.

Detailed JustificationBy providing a structured approach to evaluating internal and external influences, a SWOT analysis enhances strategic risk management in construction projects, ensuring a balanced and comprehensive assessment of potential project risks and opportunities.