PMP Practice Questions #107
During the execution phase of a software development project, your team identifies a high-impact risk associated with the integration of several complex software modules. This integration is critical to the project’s success but is outside your team’s core competencies. Having selected a risk transfer strategy, what should be your next step?
A. Remove the work associated with these components from your project schedule.
B. Review the project procurement strategy and prepare a statement of work for procurement.
C. Directly call a vendor to take this work into their scope.
D. Review the Project Risk Management Plan to understand actions linked with the transfer of risk.
Analysis:
Upon discovering a significant risk outside the team’s expertise during a software project’s execution phase, the project manager must navigate the complexities of risk management and procurement to ensure project success. The critical decision involves transferring this risk by selecting an appropriate vendor to handle the complex software module integration. This process requires a strategic approach to choose the best contract type that allows for effective risk transfer while ensuring project objectives are met.
Analysis of Options:
Option A: Remove the work associated with these components from your project schedule. Yes, removing the associated tasks from the project schedule could simplify the immediate plan, but is this the most prudent initial step? This action may reduce the workload on paper, yet it sidesteps the critical task of ensuring the outsourced work is effectively managed and integrated. Before considering task removal, the project manager must secure a reliable external partner to handle this critical work, ensuring the project’s objectives are not compromised by a premature adjustment to the schedule.
Option B: Review the project procurement strategy and prepare a statement of work for procurement.This proactive approach is essential after opting to transfer the risk. It entails crafting a detailed statement of work that clarifies the outsourced tasks, thus enabling an informed vendor selection process. By focusing on this step, the project manager ensures a clear understanding of the outsourced work’s requirements, paving the way for engaging the right vendor efficiently. This strategy not only addresses the immediate need to mitigate risk by outsourcing but also sets a foundation for a smooth procurement process, ensuring that the vendor selection aligns with the project’s specific needs and risk management strategy.
Option C: Directly call a vendor to take this work into their scope.While direct engagement with a vendor might expedite the process, it overlooks the importance of a structured procurement strategy. This approach may lead to inadequate risk assessment and vendor evaluation, potentially compromising the project’s quality and success.
Option D: Review the Project Risk Management Plan to understand actions linked with the transfer of risk.Although reviewing the risk management plan is a vital step in any risk response strategy, it might not provide specific actionable steps for the immediate need to outsource a critical component. This option does not directly address the procurement process required to transfer the risk effectively.
Conclusion: Option B is the most appropriate next step after selecting a risk transfer strategy. It emphasizes the need for a structured approach to define the work to be outsourced clearly, ensuring that the procurement process aligns with the project’s goals and risk management strategies. This option supports a methodical selection of a vendor who can meet the project’s specific needs, thereby effectively managing the identified risk while maintaining project integrity and objectives.
PMP Exam Content Outline Mapping
| Domain | Task |
|---|---|
| Process | Task 3: Assess and manage risks |
| Process | Task 11: Plan and manage procurement |
Topics Covered
- Plan Risk Responses
- Procurement Strategy
- Procurement Management Plan
