PMP Question #177: Real Exam Question with Answer & Explanation

Question

An oil and gas project started without having acquired full funding for the project. The remaining funds were to be acquired during project execution. The acquisition of the remaining funds was delayed several months, resulting in a suspension of work by all contractors. What should the project manager have done to prevent this from happening?

Options

• AEnsured the stakeholder anticipated obstacles to achieving financial closure on the remaining
• BEnsured the risk was adequately assessed and mitigated by the appropriate stakeholders.
• CEnsured the stakeholder who was providing additional funds remained interested in the project.
• DEnsured the project team monitored and reviewed the project risk register periodically.

Explanation

To prevent project suspension due to delayed funding, the project manager should have ensured that the risk of funding acquisition was thoroughly assessed and appropriate mitigation strategies were in place.

Common mistakes.

• A. While stakeholders should anticipate obstacles, the PM's role is more active; it's not just about anticipation but ensuring proactive assessment and mitigation of risks.
• C. Ensuring a stakeholder's interest is part of stakeholder management, but it doesn't directly address the financial closure process or the mechanisms to secure funds, which is the root of the problem.
• D. Monitoring the risk register is an ongoing activity, but the failure here was in the initial assessment and mitigation of a known, significant risk before it caused project suspension.

Concept tested. Proactive risk management and mitigation

Reference. https://docs.microsoft.com/en-us/azure/devops/boards/get-started/identify-track-risk-impediments

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