PMP Practice Questions #158
You are in the early phases of a predictive lifecycle project expected to deliver a product that will lead to a new line of business. According to the benefit management metrics, the expected customer acquisition in the first six months of the product launch is being tracked. In your project, the risk of not meeting this performance goal has already been identified. Based on changes in the environment, you see the probability of this risk has increased and crossed the risk threshold. What is the right thing to do?
A. Present your assessment of this risk in the upcoming governance review meeting.
B. Revisit the customer acquisition metrics based on the current trend to adjust expectations and plans accordingly.
C. Escalate this risk to the governance group.
D. Since this risk does not impact your baseline, no immediate action is required.
Analysis
In this question, the project manager is in the early phases of a predictive lifecycle project aimed at delivering a new product. The expected customer acquisition for the first six months post-launch is a key performance goal, and the probability of not meeting this goal has increased, crossing the risk threshold. The project manager must decide on the right course of action to address this heightened risk.
Analysis of Options
Option A: Present your assessment of this risk in the upcoming governance review meeting. While presenting the risk assessment in the upcoming governance review meeting is a good choice, the urgency of the situation—given that the risk has crossed the threshold—suggests that immediate action is necessary. Waiting for the next scheduled meeting might delay critical responses needed to manage the risk effectively.
Option B: Revisit the customer acquisition metrics based on the current trend to adjust expectations and plans accordingly. Revisiting and adjusting customer acquisition metrics based on the current trend to adjust expectations and plans might seem like a practical approach. However, this implies unilaterally changing the expected number of customer acquisitions to align with the current trends, and planning expenses and profits accordingly. This is not advisable because the question indicates that the risk is considered high priority and has crossed the risk threshold. Making such significant changes without consulting the governance group is inappropriate, as benefit management metrics typically fall under their purview. The project manager should not make these decisions alone.
Option C: Escalate this risk to the governance group. Escalating the risk to the governance group is the most appropriate action. When a risk crosses the established threshold, it is essential to involve the governance group, as they are responsible for making decisions in response to significant changes in the project environment. This option ensures that the project remains aligned with strategic objectives and that appropriate measures are taken to manage the increased risk. Escalation in this context is necessary and aligns with best practices in risk management and governance. By escalating the risk, the necessary attention and resources are allocated to address it effectively, ensuring that the project can continue to meet its goals despite the increased probability of not meeting customer acquisition targets.
Option D: Since this risk does not impact your baseline, no immediate action is required. This option is not appropriate because it overlooks the significance of the risk crossing the threshold. Even if the baseline is not immediately impacted, the increased probability of not meeting the customer acquisition goals has strategic implications that need to be addressed promptly. Ignoring the risk contradicts effective risk management practices and could lead to more severe consequences later.
Conclusion: The correct action is to escalate the risk to the governance group. This ensures that the heightened risk is addressed appropriately and that necessary adjustments are made in collaboration with senior management and key stakeholders.
Correct Answer: Option C: “Escalate this risk to the governance group.”
PMP Exam Content Outline Mapping
| Domain | Task |
|---|---|
| Business | Task 3: Evaluate and address external business environment changes for impact on scope |
| Process | Task 3: Assess and manage risks |
| Process | Task 14: Establish project governance structure |
Topics Covered
- Governance
- Risk Management
