A project manager reviewed a project's financials and determined the following: - The project has a burn rate of $15,000 per month. - The project has $70,000 left in its budget. - The project team…

Question

Options

• AUpdate the risk register to show funding will run out prior to completion.
• BAttempt to crash the project schedule to reduce the time to complete.
• CIssue a change control request for additional funds to complete the project.
• DPrepare a budget analysis identifying the root cause of the overburn.

• A
  10% (5)
• B
  22% (11)
• C
  63% (32)
• D
  6% (3)

Explanation

The math reveals a clear funding deficit: 6 months × $15,000 = $90,000 needed, but only $70,000 remains - a $20,000 shortfall. Since the project will definitively run out of money before completion, the FIRST action is to issue a change control request for additional funds (C). This is the formal mechanism to surface the budget gap to decision-makers and get authorization to continue. Updating the risk register (A) is inappropriate here because this is no longer a risk (uncertain future event) - it is an active issue with a known outcome. Crashing the schedule (B) might reduce cost but requires authorization and analysis first. Preparing a root-cause budget analysis (D) is useful supporting material but is secondary to formally requesting the funds needed to keep the project alive.

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