CAPM Practice Question: Project Management Fundamentals and Core Concepts
You are managing a software upgrade project for a financial institution. The project involves upgrading the core banking system to a new version. During user acceptance testing (UAT), the testers find that the new system does not handle certain legacy data formats correctly, causing errors. The project schedule has no buffer left, and the go-live date is fixed due to regulatory compliance. The team estimates it will take two weeks to fix the issue, but the go-live is in one week. The project manager has already used the contingency reserve for other issues. What should the project manager do next?
⚠ Common exam trap
Watch out — candidates often assume the management reserve is always the next step for budget issues, but the PM must first exhaust internal options (like workarounds) and escalate to the sponsor before tapping into reserves, especially when the schedule is fixed and compliance is at stake.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Evaluate the possibility of a partial fix or workaround to meet the go-live date, and escalate to the sponsor if needed.
The project manager must first evaluate feasible alternatives (like a partial fix or workaround) to meet the fixed go-live date, given that the contingency reserve is exhausted and the schedule has no buffer. Escalating to the sponsor is appropriate when the issue impacts regulatory compliance and requires a decision beyond the PM's authority. This aligns with the CAPM principle of managing stakeholder expectations and seeking sponsor guidance when constraints force trade-offs.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Ignore the issue and proceed with the go-live as planned, since the errors affect only legacy data.
Why it's wrong here
Proceeding knowingly ships data-integrity errors into a regulated core banking system, breaching UAT exit criteria; legacy formats still carry live balances. It is tempting because the errors appear narrow, but ignoring a known defect is the correct choice only when impact is assessed and formally accepted as a documented risk.
- ✗
Request additional budget from the management reserve to hire external consultants to fix the issue faster.
Why it's wrong here
Management reserve covers unknown-unknowns and needs sponsor approval; this is a known defect found in UAT, so it belongs to the contingency reserve, already depleted. It is tempting because extra funding appears to solve the two-week fix, but management reserve is the correct source only for unplanned scope or unforeseen risks.
- ✓
Evaluate the possibility of a partial fix or workaround to meet the go-live date, and escalate to the sponsor if needed.
Why this is correct
With no schedule buffer, contingency reserve exhausted and a fixed regulatory go-live, a full two-week fix is unviable. Evaluating a partial fix or workaround preserves the compliance deadline, while escalation to the sponsor secures authority for any scope or risk trade-off beyond the project manager's remit.
- ✗
Direct the team to fix the issue and delay the go-live, then inform the sponsor.
Why it's wrong here
Delaying a regulatory-fixed go-live is a schedule change requiring sponsor and change-control approval, not a unilateral directive; the PM lacks authority to move a compliance date. It is tempting because schedule compression is exhausted, yet delaying is the correct response only once the sponsor formally accepts the slip.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This CAPM practice question is part of Courseiva's free PMI certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the CAPM exam.