PMP · Question #887
A project manager is leading a project when a major crisis suddenly causes an economic downturn, which may threaten the project outcome. What should the project manager do?
The correct answer is D. Document the new risks in the project benefits management plan and risk management plan.. When a major external crisis threatens project outcomes, the project manager should immediately identify and document these new risks in the project's risk and benefits management plans.
Question
A project manager is leading a project when a major crisis suddenly causes an economic downturn, which may threaten the project outcome. What should the project manager do?
Options
- AUpdate the project charter and benefits management plan with the current realities.
- BCreate a proposal suggesting that the project sponsor terminate the project.
- CReallocate some project resources to other assignments in the organization.
- DDocument the new risks in the project benefits management plan and risk management plan.
How the community answered
(48 responses)- A13% (6)
- B6% (3)
- C2% (1)
- D79% (38)
Why each option
When a major external crisis threatens project outcomes, the project manager should immediately identify and document these new risks in the project's risk and benefits management plans.
Updating the project charter is typically reserved for fundamental changes to project authorization or high-level objectives, which is usually a consequence of a major crisis, not the initial risk identification step.
Proposing project termination as the first response is premature; a thorough risk assessment and impact analysis should precede such an extreme recommendation.
Reallocating resources without first understanding the full impact of the crisis and reassessing project needs or viability is a reactive measure that could further jeopardize the project.
A major economic downturn represents a significant new threat that must be formally identified and documented within the risk management plan. Assessing its potential impact on the project's planned benefits, and thus updating the benefits management plan, is a critical follow-up step to ensure awareness and allow for informed response planning.
Concept tested: Risk identification and management
Source: https://www.pmi.org/pmbok-guide-standards/foundational/pmbok/seventh-edition
Topics
Community Discussion
4
Nina C.Apr 11, 2026Just to make sure I understand the setup, the economic downturn is a new external risk that could threaten the project benefits, so the PM needs to capture that formally before taking bigger actions like termination. The answer is D because the PMs job is to document new risks in the risk management plan and note the impact on expected benefits in the benefits management plan. Options A and B jump ahead to changing the charter or killing the project without doing the risk assessment first, and C is just shuffling resources without analyzing the threat. D is the measured first step that the exam expects when a new risk shows up
Samuel O.Apr 4, 2026D is correct here, and it makes sense from what I have seen when budgets get slashed mid-project. You document the new risks first in the risk management plan and benefits management plan before anyone jumps to killing the project outright, because leadership needs that formal impact analysis to make an informed call.
Carlos M.Apr 5, 2026Agreed on D, but keep in mind the risk register is where those new risks actually get logged, the risk management plan just defines the process for handling them.
Carlos M.Apr 6, 2026D is right, crisis hits, you document risks first before drastic moves.