PMP · Question #1067
A risk was raised during the initiation of a project. The supplier discontinued software support for one of the project's required inputs. The project manager planned a reserve budget to allow the…
The correct answer is D. Inform the sponsor that the risk has been realized and that a decision has to be made for the. When a critical risk, such as discontinued software support, has been realized, the project manager must inform the sponsor and seek their decision on how to proceed, as this impacts the project's viability.
Question
A risk was raised during the initiation of a project. The supplier discontinued software support for one of the project's required inputs. The project manager planned a reserve budget to allow the project to continue in the event of this occurrence. What should the project manager do?
Options
- ATell the project team to stop work, as software support will be canceled and the project cannot
- BAdvise the supplier that the sponsor will pay for software support as previously planned.
- CAsk the supplier to continue providing software support until the end of the project.
- DInform the sponsor that the risk has been realized and that a decision has to be made for the
How the community answered
(36 responses)- A11% (4)
- B3% (1)
- C6% (2)
- D81% (29)
Why each option
When a critical risk, such as discontinued software support, has been realized, the project manager must inform the sponsor and seek their decision on how to proceed, as this impacts the project's viability.
Telling the team to stop work without sponsor consultation is a premature and unauthorized decision, as the sponsor might have alternative solutions or decide to adjust the project scope.
Advising the supplier that the sponsor will pay for support is an assumption; the sponsor has not made this decision, and such a commitment cannot be made by the project manager alone.
Asking the supplier to continue support is an attempt to mitigate, but it does not address the fundamental issue of the supplier's decision to discontinue support and the need for a strategic decision by the sponsor.
The discontinuing of software support for a required input is a significant realized risk that directly impacts the project's ability to proceed, requiring the project manager to immediately inform the sponsor. The sponsor must then make a strategic decision on the path forward, potentially involving budget reallocation, scope changes, or project termination.
Concept tested: Risk response implementation and sponsor communication
Source: https://www.pmi.org/pmbok-guide-standards/foundational/pmbok/risk-management
Topics
Community Discussion
5
Yusuf A.Dec 20, 2025D is correct here. The senior PM I shadow during study prep drilled this into me, once a risk is realized and you planned a reserve for it, you inform the sponsor and let them make the call on how to proceed, you don't just unilaterally spend the reserve or make promises to the supplier.
Orla P.Dec 21, 2025Right call on D, and worth adding that the sponsor notification piece kicks in when the contingency reserve is exhausted or the risk impact exceeds the threshold in the risk register, not necessarily for every realized risk that was already planned for.
Orla P.Dec 31, 2025D is correct because when a planned risk is realized you draw down that reserve and inform the sponsor that a decision is needed on how to proceed. The key phrase in the stem is that the reserve was already planned, which means the PM flagged this back in initiation and now just needs to execute the response. A is wrong because stopping work is never the first move when you have a contingency plan funded. B and C both try to push the supplier around without acknowledging the risk has already materialized. Saw this exact scenario on my PMP attempt last spring and almost overthought it. The word reserve
Luis F.Dec 18, 2025Going with A here. If the software support is discontinued and the project depends on it, the PM needs to stop work immediately rather than burning through the reserve on something that might not even be viable anymore. The reserve is there to keep the project going, but you gotta pause first and figure out if it even makes sense to continue.
Yusuf A.Dec 18, 2025Actually D is the right call here. My senior showed me that when a tool loses support mid-project, the PM should use the reserve to find a workaround or replacement and keep things moving, not freeze everything while stakeholders wait.