You are managing a project and the sponsor has removed the previous Project Manager on the project because they could not keep the project on budget. According to your current project budget, this…

Question

Options

• AReport the delay to senior management and the reasons
• BTell senior management the project is over budget by $245,000 with a plan to recover
• CThe schedule is only two weeks behind so you don't report the delay
• DDon't report the delay and begin looking for a new job

• A
  4% (2)
• B
  67% (34)
• C
  8% (4)
• D
  22% (11)

Explanation

The PMI Code of Ethics emphasizes honesty and transparency. A Project Manager has a professional obligation to report accurate project status regardless of personal consequences. Answer B is correct because it combines two critical elements: full disclosure of the budget overrun AND a corrective action plan. Simply reporting the problem without a recovery plan (A) is less effective. Hiding the overrun (C, D) is dishonest and unethical - and the problem will eventually surface anyway, causing greater damage. Presenting management with both the problem and a plan demonstrates professional competence and integrity.

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