Which artifact documents the rationale for making a business investment and supports management of the investment through its full economic life cycle?

• A. Business case
• B. Lag risk indicator
• C. KPI
• D. Risk gap

Answer: (A)

A business case captures the justification for an investment and provides the framework for guiding and controlling it through its entire economic life cycle. It lays out the problem or opportunity, evaluates options, and presents the expected benefits, costs, and risks, with financial metrics to justify the decision. It also includes a plan for realizing benefits and a governance timeline, so leadership can approve, monitor, and adjust the investment as it progresses. Because it ties the rationale to ongoing value delivery, the business case serves as the reference point for decisions about continuing, modifying, or terminating the investment as realities unfold. Other artifacts focus on different purposes: a lag risk indicator signals risk materialization after events, a KPI tracks performance against targets, and a risk gap identifies gaps in controls—none document the overarching rationale or guide management through the full life cycle like a business case.