PMP Practice Questions #27
As the project manager of a significant software development initiative, you’ve identified a risk: team members could fall ill and take unscheduled leaves, potentially derailing the project timeline. In discussing this risk with a primary stakeholder, they suggest accepting such uncertainties as routine business events, hinting at their higher risk tolerance. You understand the importance of having a unified approach to risk management for the project’s success. In light of the above, what is the most appropriate next step?
A) Overlook the stakeholder’s opinion and directly include the risk in the risk register.
B) Collaborate with the stakeholder to establish and document the risk appetite and threshold in the risk management plan.
C) Educate the stakeholder that, in line with project management best practices, all risks should be identified.
D) Prioritize only the risks with high impact and high probability, disregarding the risk you’ve pinpointed.
The situation is set where the project manager identifies a potential risk: team members might take unscheduled leaves, possibly causing delays. However, a primary stakeholder views this as a typical challenge, indicating their higher risk tolerance. The core issue is deciding on the most appropriate subsequent action, emphasizing the importance of a unified risk management approach and alignment with stakeholders.
Analysis of Options:
Option A: Overlook the stakeholder’s opinion and directly include the risk in the risk register. This option might appear assertive, but risks are topics of several monitoring and tracking meetings. If the project manager includes risks that stakeholders find unnecessary, it can make these meetings controversial and ineffective. A risk register isn’t just for the project manager’s reference; it’s for all stakeholders. Blindly adding risks without stakeholder buy-in isn’t the best approach.
Option B: Collaborate with the stakeholder to establish and document the risk appetite and threshold in the risk management plan. The core of the situation appears to stem from a lack of agreement or understanding on what constitutes a risk for this particular project. The question suggests that it might be beneficial to have an agreement on the overall risk management approach. This encompasses understanding the risk score or severity level that warrants attention and at what level risks might not even need documenting. By collaborating and defining these thresholds in a risk management plan, the project can move forward with a unified risk strategy. This seems to be the fitting solution.
Option C: Educate the stakeholder that, in line with project management best practices, all risks should be identified. This option is misleading. There isn’t a mandate that every uncertain event or potential risk be documented. If all uncertainties were documented, the project team might find itself overwhelmed and only working on managing risks. Every project operates under some uncertainties, but there needs to be a line drawn on which ones get documented and which ones are considered day-to-day uncertainties.
Option D: Prioritize only the risks with high impact and high probability, disregarding the risk you’ve pinpointed. While prioritizing high-impact and high-probability risks is important, this option seems too immediate. Deciding on this without an agreed risk management plan might mean other significant risks could get overlooked. The risk management plan should guide the selection and prioritization process, ensuring a clear and consistent approach.
Conclusion: After evaluating the provided choices, it’s evident that having a collective understanding of risk management, including defining risk appetite and threshold in the risk management plan, is crucial. This entails working closely with stakeholders to align on how risks are identified and addressed. Thus, Option B emerges as the optimal solution.
PMP Exam Content Outline Mapping
|Process||Task 3: Assess and manage risks|
|People||Task 9: Collaborate with stakeholders|
- Risk Management Plan
- Risk Response planning
- Collaborate to manage stakeholders’ expectations