PMP practice question 7 of 35

During the execution phase of a major infrastructure project, your team uncovers a significant risk that could impact the project schedule by 4…

Domain Process

During the execution phase of a major infrastructure project, your team uncovers a significant risk that could impact the project schedule by 4 weeks. The risk has not been identified in your risk register. Two team members strongly advocate for immediate mitigation action; one other team member believes the risk is overblown and wants to monitor it. Your sponsor wants a quick decision. How should you proceed?

Answer options

A: Trust the expertise of the two team members recommending mitigation and implement the action immediately to avoid further debate

B: Facilitate a structured risk assessment with the team to analyze the probability, impact, and root causes, then make an informed decision on whether to mitigate, accept, or monitor the risk based on project thresholds and constraints Correct answer

C: Tell the team to monitor the risk since it was not in the original risk register and was probably already implicitly accepted

D: Escalate the decision to the sponsor without conducting team analysis so you do not delay the sponsor's decision

Correct Answer:

B. Facilitate a structured risk assessment with the team to analyze the probability, impact, and root causes, then make an informed decision on whether to mitigate, accept, or monitor the risk based on project thresholds and constraints

Explanation

According to PMI standards, when a new risk is identified during project execution, the project manager must first document it in the risk register and facilitate a structured analysis to determine its probability and impact. Skipping analysis to appease a sponsor's demand for speed or relying on a majority vote violates the standard risk management process. By assessing the risk's characteristics and root causes collaboratively, the project manager ensures that any subsequent response strategy (mitigate, accept, monitor) aligns with the project's approved risk thresholds and constraints, enabling an evidence-based decision.

Why Incorrect

Option A: Implementing mitigation without formal analysis bypasses the risk management plan and fails to evaluate the actual probability, impact, or cost-effectiveness of the response.
Option C: Assuming a newly discovered risk is implicitly accepted is incorrect; all new risks must be formally documented, analyzed, and managed throughout the project lifecycle.
Option D: Escalating to the sponsor without first analyzing the risk and formulating recommendations abdicates the project manager's responsibility to manage project risks effectively.

References

1. Project Management Institute. (2021). A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Seventh Edition. Section 2.8 (Uncertainty Performance Domain), pp. 119-122. (Details the necessity of evaluating threats and opportunities continuously throughout the project lifecycle).

2. Project Management Institute. (2017). A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition. Section 11.3 (Perform Qualitative Risk Analysis), pp. 419-427. (Specifies the process of prioritizing individual project risks for further analysis or action by assessing their probability of occurrence and impact).

3. Project Management Institute. (2009). Practice Standard for Project Risk Management. Chapter 6 (Perform Qualitative Risk Analysis), pp. 27-32. (Provides the framework for structured risk assessment and decision-making based on organizational thresholds).

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