PK0-004 · Question #907
Two weeks before reaching a major milestone, an unidentified risk is realized. The risk will have a profound effect on the financial health of the project, nearly doubling the actual costs to…
The correct answer is C. Trigger the incident response plan and gather the project participant's opinions on the best. When a significant unidentified risk is realized that dramatically impacts project finances, the correct response is to engage the formal incident response process and gather stakeholder input rather than ignoring or unilaterally stopping the project.
Question
Two weeks before reaching a major milestone, an unidentified risk is realized. The risk will have a profound effect on the financial health of the project, nearly doubling the actual costs to complete the work. Which of the following is the BEST action for the project manager to consider?
Options
- AMeet with the project sponsor and other senior stakeholders to review the risk management
- BContinue the project work as planned through the upcoming milestone, and then determine
- CTrigger the incident response plan and gather the project participant's opinions on the best
- DImplement a full project stop, and then provide the risk information and updated financial
How the community answered
(62 responses)- A18% (11)
- B5% (3)
- C69% (43)
- D8% (5)
Why each option
When a significant unidentified risk is realized that dramatically impacts project finances, the correct response is to engage the formal incident response process and gather stakeholder input rather than ignoring or unilaterally stopping the project.
Meeting with the sponsor to review risk management is reactive and informal - it does not invoke the structured process designed specifically to handle realized risk events.
Continuing work through the milestone while deferring the risk decision allows the problem to compound and delays critical decision-making on a near-cost-doubling event.
Triggering the incident response plan is the appropriate structured response to a realized significant risk, as it initiates a formalized process for assessing impact, documenting the issue, and determining the best corrective action. Gathering input from project participants ensures diverse perspectives inform the decision, improving the quality and buy-in of the resolution.
A full project stop is an extreme unilateral action that should only follow a formal escalation and stakeholder decision process, not be the first response by the project manager.
Concept tested: Incident response to realized risks with significant financial impact
Source: https://www.pmi.org/pmbok-guide-standards/foundational/pmbok
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