Project Management Professional (PMP)® Examination Content OutlineProcessHard
A project manager is overseeing a complex infrastructure project. Midway through execution, a key subcontractor responsible for specialized earthworks declares bankruptcy. This event was not identified during initial risk planning. What is the MOST appropriate immediate action for the project manager?
- AImmediately initiate legal action against the subcontractor for breach of contract.
- BInform the project sponsor of the situation and request additional budget and time to absorb the delay.
- CConvene an urgent meeting with the project team and procurement to develop contingency plans and identify alternative solutions.
- DAssign the earthworks tasks to the internal project team, assuming they can quickly learn the specialized skills.
Show answer & explanationAnswer & explanation
Correct answer: C. Convene an urgent meeting with the project team and procurement to develop contingency plans and identify alternative solutions.
When an unanticipated risk occurs, the project manager's immediate priority is to assess the impact and work with the team to develop a response. Engaging procurement and the team to find alternative solutions is a proactive and collaborative approach to mitigate the damage.
Why the other options are wrong
- A. Legal action is a long-term consequence and not an immediate solution to keep the project moving.
- B. Informing the sponsor is important, but asking for more budget/time without a clear plan for mitigation is premature and reactive.
- D. Assigning specialized tasks to an unqualified internal team is highly risky and likely to lead to quality issues, delays, and increased costs.
Risk Response Planning
The process of developing options and actions to enhance opportunities and reduce threats to project objectives.
- Involves identifying strategies like avoidance, transference, mitigation, or acceptance for threats.
- For opportunities, strategies include exploitation, enhancement, sharing, or acceptance.
- Outputs include risk response plans, residual risks, and secondary risks.
Memory trick: When a project hits an unexpected snag, assess, strategize, and adapt swiftly.