Future Bright Electronics is developing a device that combines the functions of several pieces of equipment, including a video camera, MP3 player, and memory stick. It’s a risky venture because competitors are working on similar devices and technologies are constantly changing. Most of the risks cannot be anticipated. What is the most effective approach for managers to take?

A) Develop contingency plans.

B) Rely primarily on decision-making tools such as return on investment, net present value, and internal rate of return.

C) Conduct a risk audit.

D) Use adaptive project management.