How is a 'stakeholder' defined in the context of business analysis?

In the context of business analysis, a stakeholder is defined as an individual or group that is impacted by the outcome of a project. This broad definition encompasses anyone who is involved with or affected by what the project aims to achieve, including users, customers, sponsors, and team members, among others. Understanding who the stakeholders are and their interests is crucial for business analysts because it helps ensure that the project meets their needs and expectations, contributing to the overall success of the initiative.

This definition aligns with the principles laid out in the BABOK, specifically emphasizing the importance of stakeholder engagement and communication throughout the business analysis process. Engaging stakeholders effectively allows for gathering valuable insights, identifying requirements, and validating outcomes, which is central to the role of a business analyst. Stakeholders can influence all aspects of a project, from its conception through to its implementation, making their identification and management critical for project success.