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PFMP · Question #30

You have found that one of the vendors had a low reputation, and you are worried that they would provide low-quality service for your portfolio. What should you do next?

The correct answer is B. Record this in the risk register. When a potential risk is identified - such as a vendor with a low reputation - the immediate next step is to formally document it in the risk register.

Portfolio Risk Management

Question

You have found that one of the vendors had a low reputation, and you are worried that they would provide low-quality service for your portfolio. What should you do next?

Options

  • ADisapprove the project using this vendor
  • BRecord this in the risk register
  • CUpdate the risk management plan
  • DCommunicate the risk to stakeholders

How the community answered

(54 responses)
  • A
    2% (1)
  • B
    91% (49)
  • C
    4% (2)
  • D
    4% (2)

Why each option

When a potential risk is identified - such as a vendor with a low reputation - the immediate next step is to formally document it in the risk register.

ADisapprove the project using this vendor

Disapproving the project is a premature response that bypasses the risk assessment and stakeholder input required before making a component-level decision.

BRecord this in the risk registerCorrect

The risk register is the designated artifact for capturing newly identified risks, including their description, potential impact, and likelihood. Recording the vendor reputation concern here initiates the formal risk management process and ensures it is tracked, analyzed, and responded to appropriately.

CUpdate the risk management plan

The risk management plan defines the overall approach to managing risk; it is not updated each time an individual risk is identified.

DCommunicate the risk to stakeholders

Communicating the risk to stakeholders should follow formal identification and analysis, not precede documenting it in the risk register.

Concept tested: Risk identification and risk register documentation

Source: https://www.pmi.org/pmbok-guide-standards/foundational/standard-for-portfolio-management

Topics

#Risk Management#Risk Identification#Risk Register#Portfolio Risk

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