"Planning is an activity which enables managers to look ahead and anticipate changes. By deciding in advance the tasks to be performed, planning shows the way to deal with changes".

Importance of planning derived from above para is 

Planning reduces the risks of uncertainty

The correct answer is option (3)- Planning reduces the risks of uncertainty.

Importance of planning derived from above para is Planning reduces the risks of uncertainty.

* Planning Reduces the risk of uncertainty- Planning is an activity which enables a manager to look ahead and anticipate changes. By deciding in advance the tasks to be performed, planning shows the way to deal with changes and uncertain events. Changes or events cannot be eliminated but they can be anticipated and managerial responses to them can be developed.

OTHER OPTIONS

Planning is pervasive: Planning is required at all levels of management as well as in all departments of the organisation. It is not an exclusive function of top management nor of any particular department. But the scope of planning differs at different levels and among different departments.

Planning promotes innovative ideas: Since planning is the first function of management, new ideas can take the shape of concrete plans. It is the most challenging activity for the management as it guides all future actions leading to growth and prosperity of the business.

Planning reduces overlapping and wasteful activities: Planning serves as the basis of coordinating the activities and efforts of different divisions, departments and individuals. It helps in avoiding confusion and misunderstanding. Since planning ensures clarity in thought and action, work is carried on smoothly without interruptions. Useless and redundant activities are minimised or eliminated. It is easier to detect inefficiencies and take corrective measures to deal with them.