A project has consistently been lagging in cost performance index (CPI) and schedule performance index (SPI) over the past few months. The risk manager realizes that some activities are taking longer

Question

Options

• ASchedule and resource assumptions
• BContingency reserves
• CWork breakdown structure (WBS)
• DRisk impact matrix

• A
  81% (39)
• B
  6% (3)
• C
  10% (5)
• D
  2% (1)

Explanation

When a project consistently underperforms on both cost (CPI) and schedule (SPI), it is a signal that the foundational assumptions used to build the plan were inaccurate. Schedule and resource assumptions underpin all time and cost estimates-if the assumptions were wrong (e.g., work takes longer than assumed, team members are less productive, resources cost more), the plan will consistently fall short. Analyzing these assumptions allows the risk manager to identify which assumptions are no longer valid and adjust the plan accordingly. Contingency reserves (B) are buffers but reviewing them doesn't explain why performance is lagging. The WBS (C) defines scope but doesn't explain cost/schedule variance. The risk impact matrix (D) ranks risks but doesn't address the root cause of ongoing overruns tied to planning assumptions.

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