PMI-RMP Question #565: Real Exam Question with Answer & Explanation

Question

In a large mobile network deployment project, there is delay risk due to insufficient staffing. The risk manager is considering executing a response plan, which involves allowing staff members to work overtime. However, this action may lead to excessive additional cost. What should the risk manager do?

Options

• ADocument the concern over the potential excessive additional cost.
• BManage the potential excessive additional cost as a new risk.
• CEnsure the project sponsor has the risk appetite for the residual risk created by allowing overtime.
• DPrepare a detailed response plan for the residual risk with a clear owner and time line to ensure

Explanation

In this scenario, the risk manager is considering a response that could lead to a significant residual risk--excessive additional costs due to overtime. Before proceeding, it is crucial to confirm that the project sponsor is comfortable with the risk appetite for this potential outcome. This step is essential to ensure that the decision to allow overtime aligns with the sponsor's tolerance for additional costs and the overall project risk management strategy. According to the Risk Management Procedure, understanding and aligning with the sponsor's risk appetite is a critical step before implementing risk responses that could impact the project's financials. This approach ensures that all stakeholders are aware of and agree to the potential consequences of the chosen risk response strategy.

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