Tom is the project manager for his organization. In his project he has recently finished the risk response planning. He tells his manager that he will now need to update the cost and schedule baseline

When the team defines risk responses, they may add contingency activities, preventive actions, or workarounds that were not in the original plan, or they may remove activities rendered unnecessary by the response strategy. These additions or omissions constitute changes to the project's scope of work that must be reflected in updated cost and schedule baselines. The updated baselines then become the new authorized reference for measuring project performance.

Stating that risk responses protect time and investment is a general benefit, not the technical explanation for why baselines must be formally updated.

While implementing risk responses does consume time and money, the precise reason for baseline updates is the addition or omission of specific work activities, not just resource consumption.

Project baselines are formal, change-controlled documents that must be revised when approved scope, cost, or schedule changes occur - they cannot simply be versioned without reflecting actual approved changes.