PMP Practice Questions #26
You are the project manager for a large construction project of a new city mall. During your initial risk assessment, you identified a risk associated with potential delays in receiving the customized glass facade—a key architectural feature. At the time, this risk seemed less likely due to stable global supply chains. However, as the project progresses, one of the major glass manufacturing plants unexpectedly shuts down, heightening the likelihood of this risk. Given this development, what should be your next course of action?
A) Allocate contingency funds to expedite shipping from an alternative source.
B) Remove the facade feature from the project to prevent potential delays.
C) Direct the project team to source from local suppliers.
D) Reassess the identified risk, updating both its impact and likelihood, then adjust your risk response strategies accordingly.
The scenario emphasizes the dynamic nature of project risks and the importance of a project manager’s adaptability. When faced with unexpected changes in the external environment, such as the shutdown of a major glass manufacturing plant, the question asks how a project manager should respond.
Analysis of Options:
Option A: Allocate contingency funds to expedite shipping from an alternative source. This option provides a reactive measure by allocating contingency funds for expedited shipping. While this may seem like a viable solution, the root cause, which is the change in risk profile due to external factors, isn’t addressed directly. Jumping to this action without a comprehensive risk reassessment might be premature.
Option B: Remove the facade feature from the project to prevent potential delays. This option might be perceived as drastic, given that the facade is a key architectural feature. The question doesn’t indicate that the scope is flexible or that the feature adds little value. Also, there is no conclusive evidence that there will be a delay, only that the risk has increased.
Option C: Direct the project team to source from local suppliers. While local sourcing may seem attractive due to potential cost savings and quicker access, the quality and specifications of local supplies need to be considered. This option, much like Option A, offers a potential solution without first reassessing the risk in light of new circumstances.
Option D: Reassess the identified risk, updating both its impact and likelihood, then adjust your risk response strategies accordingly. This option is rooted in the fundamental principle of continuous risk management in projects. Risk identification isn’t a one-time activity. Risks need continuous monitoring and reassessment. As situations evolve, it’s imperative to revisit both the potential impacts of a risk and the probability of its occurrence. Based on these re-evaluations, the risk response strategies might require adjustments. It emphasizes the need for iterative risk assessment in project management and offers a proactive approach by first understanding the changed risk environment before jumping to conclusions.
Conclusion: In the face of external changes, it’s crucial for a project manager to revisit and reevaluate risks. Option D stands out as it emphasizes reevaluating the risk’s impact and likelihood and then adjusting strategies based on the updated assessment.
PMP Exam Content Outline Mapping
|Process||Task 3: Assess and manage risks|
|Business||Task 3: Evaluate and address external business environment changes for impact on scope|
- Iterative risk assessment and prioritization
- Assessing Scope Impacts from External Business Environment Shifts