PMI-RMP · Question #461
A budget change request was initiated by a functional manager in an organization due to a shortage in the functional manager's department budget. The functional manager asks the CEO to approve…
The correct answer is A. Reformed the risk monitoring and closing process properly. As a project moves through its lifecycle and risks are retired or closed, the risk manager is responsible for formally closing those risks and releasing the associated contingency reserves back to the organization through established governance processes. Reforming the risk…
Question
A budget change request was initiated by a functional manager in an organization due to a shortage in the functional manager's department budget. The functional manager asks the CEO to approve utilization of a contingency budget reserved for one of the projects in its closing phase. What should the risk manager of the related project have done to prevent this situation from happening?
Options
- AReformed the risk monitoring and closing process properly.
- BCreated the project work plan and budget more accurately.
- CEducated the project team on budget change requests.
- DCommunicated better with the organization's CEO.
How the community answered
(28 responses)- A79% (22)
- B11% (3)
- C7% (2)
- D4% (1)
Explanation
As a project moves through its lifecycle and risks are retired or closed, the risk manager is responsible for formally closing those risks and releasing the associated contingency reserves back to the organization through established governance processes. Reforming the risk monitoring and closing process properly (A) means the risk manager should have systematically closed out risks as they were no longer relevant and formally returned unused contingency through the correct financial channels - making that budget unavailable for informal reallocation. If this process had been followed, the contingency reserve would have already been properly reconciled and not sitting idle in a way the functional manager could request it. Options B, C, and D address unrelated concerns - budget accuracy, team education, and CEO communication - none of which directly govern the release and closure of contingency reserves.
Topics
Community Discussion
No community discussion yet for this question.