PMP · Question #1253
A project manager is assigned to a yearlong project. Before the start of the design phase, a competitor announces that they will release a similar deliverable in 8 months, although with fewer features
The correct answer is B. Discuss and review this external risk with the project sponsor. D. Evaluate the impact of incremental deliverables.. The project manager should immediately discuss this new external competitive risk with the project sponsor to assess its strategic implications and then evaluate the feasibility and impact of adopting an incremental delivery approach. This ensures strategic alignment and adaptive
Question
A project manager is assigned to a yearlong project. Before the start of the design phase, a competitor announces that they will release a similar deliverable in 8 months, although with fewer features and functionality. Which two actions should the project manager take next? (Choose two.)
Options
- AModify the project management plan with an incremental approach.
- BDiscuss and review this external risk with the project sponsor.
- CUpdate the project artifacts to include this issue.
- DEvaluate the impact of incremental deliverables.
- EReduce the scope items of the final deliverable.
How the community answered
(18 responses)- A6% (1)
- B56% (10)
- C11% (2)
- E28% (5)
Why each option
The project manager should immediately discuss this new external competitive risk with the project sponsor to assess its strategic implications and then evaluate the feasibility and impact of adopting an incremental delivery approach. This ensures strategic alignment and adaptive planning.
Modifying the project management plan to an incremental approach is a response that might come after discussing with the sponsor and evaluating its impact, not the first immediate action.
A competitor announcing an earlier release of a similar product is a significant external risk that could impact the project's market viability, strategic objectives, and competitive advantage. The project sponsor, as the highest-level stakeholder, needs to be informed immediately to assess the strategic implications and provide guidance on potential changes to the project strategy or direction.
Updating project artifacts is part of the documentation process, but identifying this as an "issue" (it's a risk) and merely documenting it without strategic discussion or evaluation of response options is insufficient.
Given the competitor's earlier release, evaluating the impact of incremental deliverables allows the project to potentially launch a minimum viable product (MVP) or earlier versions with core features to capture market share sooner. This proactive analysis helps in adapting the project strategy to remain competitive and mitigate the threat posed by the competitor.
Reducing scope items of the final deliverable is a possible risk response to achieve an earlier release, but it should be a decision made after strategic discussion with the sponsor and evaluating the impact of such a change, not an immediate unilateral action.
Concept tested: External risk management and strategic adaptation
Source: https://www.pmi.org/pmbok-guide-standards/foundational/pmbok/risk-management
Topics
Community Discussion
7
Luis F.Feb 12, 2026Got B and D on this one! B is the right first move because a competitor entering the market is a huge external risk and you absolutely need to get the sponsor in the loop before changing your approach. D makes sense as the follow-up because you have to actually figure out if shifting to incremental deliverables lets you beat them to market. A is super tempting but you don't update the project management plan until you have evaluated the impact and gotten the sponsor's blessing first. I almost picked A right off the bat but the process order really matters here!
Orla P.Feb 2, 2026B and D are the picks. C is tempting because your brain screams "log this," but it is a risk, not an issue yet, so you take it to the sponsor in B and then actually evaluate what shipping incrementally means in D.
Grace U.Jan 24, 2026A is right because going incremental lets you beat the competitor to market.
Luis F.Jan 26, 2026Grace I see where you're coming from but the question is about phased migration strategy, not racing a competitor to market. B and D are correct because a phased approach lets you validate each wave before moving the next group, which reduces risk and keeps rollback options open if something breaks.
Mei-Ling H.Jan 21, 2026Confirmed B and D on my exam last month. The key word in the stem is 'next', which means you need to first evaluate the impact of the competitor announcement on your deliverables before changing your plan, so D comes before A or C. B is correct because this is an external risk that affects business value, and the PM must consult the sponsor before making strategic scope or schedule changes. Option E is a trap because reducing scope is a unilateral decision the PM should not make without sponsor input.
Lena V.Feb 10, 2026Confirmed B and D on exam last month. The competitor announcement is an external risk that needs sponsor visibility, and D is correct because evaluating incremental deliverables lets you get to market faster without blindly cutting scope like E.
Mei-Ling H.Feb 12, 2026Agree on B but watch the qualifier in the stem, because if it says the competitor product is already released then it is an issue not a risk, which would point to A instead.