PMP · Question #1014
A project manager acquired information from the market that would reduce the business value being delivered by an ongoing project. Based on that information, the project manager believes the project…
The correct answer is D. Have a discussion with the sponsor and recommend the project business value be reassessed. New market information suggests a significant reduction in an ongoing project's business value, leading the project manager to consider stopping it.
Question
A project manager acquired information from the market that would reduce the business value being delivered by an ongoing project. Based on that information, the project manager believes the project should be stopped. How should the project manager handle the situation?
Options
- AHave a discussion with the project sponsor and cancel the project.
- BRemove the items no longer applicable from the backlog and present the backlog to the project
- CContinue working on the defined scope and review the risk matrix.
- DHave a discussion with the sponsor and recommend the project business value be reassessed.
How the community answered
(19 responses)- A5% (1)
- B11% (2)
- C26% (5)
- D58% (11)
Why each option
New market information suggests a significant reduction in an ongoing project's business value, leading the project manager to consider stopping it.
A project manager does not typically have the authority to unilaterally cancel a project, even after discussing with the sponsor; a formal decision process based on a reassessment is usually required.
Removing items from the backlog might be a consequence of reassessing business value, but it's not the initial step to address a fundamental challenge to the project's overall justification.
Continuing to work on a defined scope when its business value is questionable is fiscally irresponsible and ignores critical market intelligence that undermines the project's original justification.
When market information indicates a fundamental shift that could reduce the project's business value, the project manager must communicate this critical insight to the project sponsor. Recommending a formal reassessment of the project's business value ensures the sponsor, who is ultimately responsible for the project's strategic alignment, can make an informed decision on its continuation, modification, or termination based on current realities.
Concept tested: Business case review and stakeholder communication
Topics
Community Discussion
5
Luis F.Jun 29, 2026D is the right call here. The PM does not have the authority to just cancel the project, so A is out, but you absolutely need to escalate this to the sponsor right away. Since the market info directly impacts the business value, the best move is to recommend a reassessment so the sponsor and business leaders can decide if continuing still makes sense. This is straight out of the PMP mindset, always escalate business value concerns to the sponsor for a decision instead of acting unilaterally.
Brenda K.Jun 29, 2026D is correct and should be a 30-second read, but watch your clock because the A trap burns time if you start mentally debating PM authority instead of just spotting the escalate-to-sponsor keyword.
Brenda K.Jul 4, 2026D confirmed. Clock check, under 45 seconds, the PM recommends, the sponsor decides.
Yuki V.Jun 25, 2026Going with C here. The PM doesnt have authority to unilaterally kill a project or even recommend reassessment without first following the documented change and risk process, so you continue the defined scope while reviewing the risk matrix to properly frame the new market information before escalating.
Luis F.Jun 26, 2026Actually D is the right call here Yuki. When new external information surfaces that could make the project unviable, the PMs job is to escalate to the sponsor or governance board for a go/no-go decision rather than just continuing scope and reviewing the risk matrix on their own.