During project execution, the team had to execute the risk mitigation plan for a given deliverable, which had an unplanned financial impact. Which of the following should the project manager do next?

The correct answer is B. Update the project budget. When executing a risk mitigation plan results in an unplanned financial impact, the immediate next step is to update the project budget to reflect the actual costs incurred. Failing to do so leaves the budget inaccurate and can distort future financial decisions. A phase gate…

Project Management Concepts

Question

Options

ACoordinate a phase gate review.
BUpdate the project budget.
CConduct project meetings and updates.
DMonitor the vendor's performance.

How the community answered

(23 responses)

A
4% (1)
B
78% (18)
C
4% (1)
D
13% (3)

Explanation

When executing a risk mitigation plan results in an unplanned financial impact, the immediate next step is to update the project budget to reflect the actual costs incurred. Failing to do so leaves the budget inaccurate and can distort future financial decisions. A phase gate review is a scheduled milestone review, not a reactive step. Conducting general project meetings is routine but not the priority action here. Monitoring vendor performance is unrelated to an internal risk mitigation event. Accurate budget documentation must come first so stakeholders and the PM can make informed decisions going forward.

Topics

#Risk response#Budget management#Financial impact#Project control

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