PGMP · Question #485
A regional finance program is impacted by a new currency regulation issued by a country in the region. The new regulation requires changes to the financial statements of that country's branches by…
The correct answer is B. Create fine and closure scenarios to assess the impact on the program and create a. The scenario presents a known, specific risk with two clearly defined negative outcomes: fines or branch closure. Before securing resources or escalating, the program manager must quantify the actual impact of each scenario to determine the appropriate risk response strategy…
Question
A regional finance program is impacted by a new currency regulation issued by a country in the region. The new regulation requires changes to the financial statements of that country's branches by the end of the fiscal year. Failing to comply with the regulation may result in fines and/or closure of the branches. A branch general manager immediately meets with the program manager to select and secure a local fiscal expert to support the regulation, as these types of resources are in high demand. There is a high risk that the changes will not be completed on time if the resource is not secured. What should the program manager do to address the risk?
Options
- ABuild a coalition with local companies that can influence the government to renegotiate the
- BCreate fine and closure scenarios to assess the impact on the program and create a
- CGenerate a delivery incentive contract with the selected fiscal expert to ensure on-time
- DAssess the risk, incorporate it in the program's risk management plan, and meet with the
How the community answered
(47 responses)- A9% (4)
- B64% (30)
- C6% (3)
- D21% (10)
Explanation
The scenario presents a known, specific risk with two clearly defined negative outcomes: fines or branch closure. Before securing resources or escalating, the program manager must quantify the actual impact of each scenario to determine the appropriate risk response strategy. Creating fine and closure scenarios (B) means performing a structured impact analysis - this is essential for prioritizing risk response and building a business case for the actions needed. Option A (influencing government) is unrealistic given the timeline. Option C (delivery incentive contract) addresses only one facet of the risk without full impact assessment. Option D is partially correct but too generic - quantifying the specific scenarios (B) is the more precise and appropriate first action when facing a regulatory non-compliance risk with enumerable consequences.
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