PMP Question #1253: Real Exam Question with Answer & Explanation

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.

Explanation

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.

Common mistakes.

• A. 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.
• C. 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.
• E. 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

Reference. https://www.pmi.org/pmbok-guide-standards/foundational/pmbok/risk-management

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