What are the Investment Life Cycle phases?

• A. Select, Control, Evaluate
• B. Plan, Build, Operate
• C. Initiate, Execute, Close
• D. Define, Test, Deploy

Answer: (A)

Investment Life Cycle focuses on three essential stages: selecting investments, controlling them through governance and oversight, and evaluating results to guide future funding.

In the select phase, the organization identifies opportunities, assesses them for strategic fit, cost, benefits, and risk, and chooses those with the best alignment to goals and available resources. This step is about choosing what to fund rather than how to execute it.

The control phase brings oversight during the investment’s life. It involves budgeting, monitoring milestones and performance, managing risks, and ensuring adherence to policies and security requirements. This is where governance keeps investments on track and aligned with constraints and objectives.

The evaluate phase looks back after an investment has delivered or reached a decision point. It measures realized benefits, compares actual outcomes to expectations, identifies lessons learned, and decides whether to continue, expand, adjust, or retire the investment. This feedback loop informs future funding choices and improves portfolio decisions.

Other options describe lifecycle approaches for projects or product development, not the management of investments from funding to outcomes. They focus on how a project is planned, executed, closed or how a system is defined, tested, and deployed, which aren’t the same as managing investments across their entire lifecycle.