CIPS Defining Business Need (L4M2) Practice Test 2025 - Free CIPS Exam Practice Questions and Study Guide

In the planning stage of the Whole Life Cycle (WLC), determining a budget for the procured asset is a critical objective. This process involves assessing all costs associated with the asset over its entire lifespan, ensuring that the organization can allocate sufficient resources for purchase, maintenance, operation, and eventual disposal. Establishing a clear budget helps in making informed decisions regarding the procurement process. It allows for comparison against expected financial returns and supports aligning the asset's total costs with the organization's overall financial strategy, making it essential for effective asset management.

By focusing on the budget during the planning stage, organizations can proactively identify potential financial constraints and plan accordingly, ensuring that they can accommodate the asset throughout its lifecycle. This approach is vital for safeguarding the organization's financial health and enabling efficient resource allocation.