PMP · Question #176
A project manager is leading a project to develop accounting software for a trading firm. As the outcomes are being delivered, a new risk is identified regarding an indirect tax regulation that is bei
The correct answer is C. Assess the impact of the risk with an expert and prioritize further outcomes with the client.. Upon identifying a new risk with significant project impact, the project manager should assess its full implications with an expert and then collaborate with the client to reprioritize project outcomes.
Question
A project manager is leading a project to develop accounting software for a trading firm. As the outcomes are being delivered, a new risk is identified regarding an indirect tax regulation that is being changed by the government in the next 6 months. This risk will have a significant impact on the project outcomes. What should the project manager do next?
Options
- ADetermine the impact of the risk and prioritize outcomes that do not affect the tax module.
- BDelay developing the indirect tax module until the tax regulation comes into effect.
- CAssess the impact of the risk with an expert and prioritize further outcomes with the client.
- DAnalyze the impact of the risk and discuss with the team to determine how to separate the tax
How the community answered
(30 responses)- A7% (2)
- B17% (5)
- C63% (19)
- D13% (4)
Why each option
Upon identifying a new risk with significant project impact, the project manager should assess its full implications with an expert and then collaborate with the client to reprioritize project outcomes.
While determining impact is part of it, solely prioritizing non-tax related outcomes without full expert assessment and client consultation might not be the most strategic or complete response to a significant regulatory risk.
Delaying the tax module might seem intuitive, but it is a reactive measure without first fully understanding the expert impact or discussing the strategic implications and potential client needs for the module's future implementation.
When a new, high-impact risk like a regulatory change emerges, the project manager's immediate next step is to perform a thorough assessment of its impact, ideally with subject matter experts, and then proactively engage the client to understand their priorities and adjust the project backlog or scope accordingly. This ensures alignment and effective risk response.
Analyzing the impact and discussing with the team is a good internal step, but it's incomplete without the critical expert input and, most importantly, client collaboration to make informed decisions about reprioritization.
Concept tested: Risk response planning and stakeholder engagement
Source: https://learn.microsoft.com/en-us/azure/devops/boards/get-started/identify-track-risk-impediments
Topics
Community Discussion
4
Nina C.May 28, 2026Going with C here. Coming from a teaching background, I want to make sure I understand this correctly: you bring in a subject matter expert because tax regulations are outside the project manager's expertise, and then you work with the client to reprioritize outcomes since the regulation change has a significant impact. Is that the right read? The other options either skip the expert consultation or make decisions without involving the client.
Yuki V.May 18, 2026Confirmed C on my exam last week. The key here is that you need an expert to assess regulatory risk because us PMs are not tax law specialists, and then you bring the client into the prioritization conversation since outcomes are already being delivered. D is tempting because involving the team sounds collaborative, but separating the tax module is a solution you pick before you even understand the actual impact. A also jumps straight to reprioritizing without that expert assessment, which is a step you cannot skip on something this significant.
Viktor S.May 9, 2026D. You analyze impact first, then work the solution with the team. That is PMP 101.
Nina C.May 10, 2026Actually C, Viktor. You assess impact in PMP, but for Azure governance, the correct first step is to identify all the resources that need remediation so you know the full scope before making changes.