PMP · Question #820
A labor union contract negotiation is delaying the completion of a project to build a new manufacturing plant. Because the labor contract was due for renewal this year, the project manager documented
The correct answer is C. Log the issue and follow the planned actions in the risk response plan.. Since the labor negotiation was identified and documented as a risk, the project manager should proceed by formally logging it as an issue and executing the pre-defined actions from the risk response plan.
Question
A labor union contract negotiation is delaying the completion of a project to build a new manufacturing plant. Because the labor contract was due for renewal this year, the project manager documented the negotiation process as a risk to the project. The project was about to start the first phase of equipment installation at the plant when the negotiation began. How should the project manager address the situation?
Options
- AAcquire contract resources and submit a change request for the cost impact.
- BEscalate the issue to the steering committee to ask for mitigation support.
- CLog the issue and follow the planned actions in the risk response plan.
- DMeet with the project team to determine options for risk mitigation.
How the community answered
(60 responses)- A17% (10)
- B5% (3)
- C70% (42)
- D8% (5)
Why each option
Since the labor negotiation was identified and documented as a risk, the project manager should proceed by formally logging it as an issue and executing the pre-defined actions from the risk response plan.
Acquiring contract resources and submitting a change request might be part of the risk response plan, but it's not the first or only action; the initial step is to follow the pre-determined plan for the identified risk.
Escalation might be necessary if the risk response plan is insufficient or requires high-level intervention, but the initial step is to execute the existing plan before escalating.
The labor negotiation was already identified and documented as a risk in the risk register with a planned risk response. Now that the risk has materialized and is delaying the project, it becomes an issue. The appropriate action is to formally log it as an issue and immediately implement the specific actions detailed in the established risk response plan to manage its impact.
Meeting with the project team to determine options for risk mitigation is what should have happened before the risk materialized; now that it's an issue, the PM should implement the already planned response.
Concept tested: Risk response implementation
Source: https://www.pmi.org/pmbok-guide-standards/foundational/pmbok
Topics
Community Discussion
4Confirmed C on my exam prep. The key word in the stem is that the project manager already documented this as a risk. Since the risk has now occurred and become an issue, you do not need to meet with the team to determine options or start from scratch. The correct action is to log the issue and follow the planned actions in the risk response plan. Option D is a trap because it ignores the fact that mitigation was already planned.
C is correct because a documented risk that has occurred means you log the issue and use the planned risk response.
I first leaned toward B since it sounds proactive, but the key is that the PM already documented this as a known risk, so the analogy is like a farmer who already planted storm drains anticipating the rainy season. When the rain finally comes, you don't call a town meeting to figure out what to do, you just open the valves on the drains you already built, which in PMP terms means logging the issue and following the planned actions in the risk response plan.
Nice analogy Mateus, and since the risk response was already documented in the plan, executing it falls under Monitor Risks (Domain 3) rather than going back to Plan Risk Responses, so remember the mnemonic "Monitor Means Move on planned actions."