ExpertHard1 markMultiple Choice
Task 3: Evaluate and address external business environment changesBusiness EnvironmentExternal EnvironmentTask 3
PMP · Question 37 · Task 3: Evaluate and address external business environment changes
A project relies on a supply chain that passes through a region experiencing sudden geopolitical instability. <br/><br/>What is the BEST proactive step for the project manager?
A project relies on a supply chain that passes through a region experiencing sudden geopolitical instability. <br/><br/>What is the BEST proactive step for the project manager?
Answer options:
A.
Wait for a disruption to occur before acting.
B.
Immediately switch suppliers to a more expensive local option.
C.
Conduct a risk assessment of the supply chain and identify alternative sourcing options.
D.
Increase the project budget to cover potential losses.
How to approach this question
Geopolitical Risk -> Assess -> Plan Contingency.
Full Answer
C.Conduct a risk assessment of the supply chain and identify alternative sourcing options.✓ Correct
The PM must survey the external environment. Seeing instability, the PM should assess the risk and prepare alternatives (C). Switching immediately (B) might be unnecessary waste if the disruption doesn't happen.
Common mistakes
Being reactive (A) or overly aggressive (B).
Practice the full PMP Business Environment Domain Practice Exam
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