ExpertHard1 markMultiple Choice
PMP · Question 46 · Task 3: Assess and manage risks
A project manager is using a predictive methodology. During the execution phase, a major supplier goes bankrupt. This risk was identified in the risk register, and the response plan was to use a backup supplier. However, the backup supplier is now charging double the original price. What should the PM do?
A project manager is using a predictive methodology. During the execution phase, a major supplier goes bankrupt. This risk was identified in the risk register, and the response plan was to use a backup supplier. However, the backup supplier is now charging double the original price. What should the PM do?
Answer options:
A.
Use the backup supplier immediately and accept the cost overrun.
B.
Submit a change request to use the contingency reserve (or management reserve if costs exceed contingency) to cover the price difference.
C.
Look for a third supplier.
D.
Cancel the project.
How to approach this question
Risk happened -> Cost increased -> Change Control for Money.
Full Answer
B.Submit a change request to use the contingency reserve (or management reserve if costs exceed contingency) to cover the price difference.✓ Correct
B
Task 3 (Risk) and Task 5 (Budget). Executing a risk response that costs more than expected requires budget management (Change Request).
Common mistakes
Spending money you don't have (A) without approval.
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