A natural disaster shuts down operations for two days. The program has a major milestone that includes a timed payment of US$1 million. Since the shutdown was not anticipated, what should the…

Question

Options

• AImplement the appropriate risk response plan and inform the stakeholders of the planned
• BUtilize contingency reserves to hire contractors, which will accelerate the schedule to meet
• CEvaluate the impact, reassess the program risk, and determine options to be presented to the
• DCollaborate with the sponsor to determine options and negotiate a new date for the milestone.

• A
  8% (4)
• B
  16% (8)
• C
  72% (36)
• D
  4% (2)

Explanation

Because the shutdown was not anticipated, there is no pre-existing risk response plan for this specific event, making evaluation the mandatory first action. The program manager must evaluate the full impact on schedule and the milestone payment, reassess the overall program risk profile in light of the new situation, and develop options before any action can be responsibly taken or presented to governance. Implementing a risk response plan (A) is not possible for an unanticipated event because no such plan exists. Using contingency reserves to hire contractors (B) is a specific action that should only be taken after the impact is understood and options are evaluated. Collaborating with the sponsor to negotiate a new date (D) is a valid option but requires prior impact evaluation so that the negotiation is informed by facts.

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