Which type of credibility refers to the stakeholders' trust in the results of a financial planning process?

Process credibility refers to stakeholders' trust in the financial planning process and its outcomes. In the context of public finance, this type of credibility is built through transparent, consistent, and well-documented methods used during the budget development and planning phases. When stakeholders perceive the process as fair, rigorous, and based on sound analytical practices, their confidence in the results increases. This trust is crucial because it influences how stakeholders participate in the budgeting process and their willingness to support the resulting financial plans.

In contrast, operational, leadership, and strategic credibility focus more on aspects such as management practices, the ability and integrity of the leadership team, and alignment of financial decisions with broader organizational goals, rather than on the process itself. While all these dimensions are important in a comprehensive view of credibility, process credibility specifically highlights the importance of the methodology and transparency involved in the financial planning process, making it the most relevant choice.