PMI-RMP Question #461: Real Exam Question with Answer & Explanation

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.

Explanation

One of the domains of the PMI-RMP exam is Risk Monitoring and Reporting, which involves tracking identified risks, monitoring residual risks, identifying new risks, executing risk response plans, and evaluating risk process effectiveness throughout the project. The risk manager of the related project should have reformed the risk monitoring and closing process properly to ensure that the contingency budget is only used for the intended risks and not for other purposes. The risk manager should have also communicated the status and outcomes of the risk activities to the relevant stakeholders, such as the functional manager and the CEO, to avoid any confusion or conflict over the budget allocation.

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