What is a stakeholder analysis?

A stakeholder analysis is a crucial process in project management that focuses on assessing the influence and interest of individuals or groups who may be affected by or can impact a project. By identifying stakeholders, project teams can understand their needs, expectations, and potential influence on project outcomes. This understanding helps in effective communication, managing expectations, and fostering collaboration, thus contributing to a project's success.

The analysis typically involves mapping stakeholders according to their level of interest in the project and their power or influence. This allows project managers to prioritize engagement strategies, ensuring that important stakeholders are informed, consulted, or involved in decision-making processes as appropriate.

In the context of the other options, identifying financial risks pertains more to risk management than to stakeholder analysis. Conducting the analysis only at the project's end neglects the continuous nature of stakeholder engagement throughout a project's lifecycle. Furthermore, dismissing the necessity of a stakeholder analysis for small projects overlooks the essential role that even a few stakeholders can play in project success.