PMP Practice Question: Business Environment: strategy and project benefits
A key vendor notifies you that they cannot deliver a critical component on time due to a supplier issue. The component is on the critical path. What should the project manager do first?
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
✓
Review the risk register for the identified risk and implement the planned response
When a risk (in this case, a vendor delay) occurs, the project manager's first action should be to consult the risk register to see if this risk was identified and if a planned response exists. If so, the PM should implement that response (e.g., using a backup supplier, fast-tracking, etc.). Option A is premature because finding an alternative vendor without first checking the risk register may introduce additional risks and is not the immediate step per PMBOK. Option C (overtime) is a workaround and not a planned risk response; it could cause team burnout and cost overruns. Option D (immediately informing the sponsor) is an escalation that should occur only after the PM has assessed the situation and determined the appropriate response; initial action should be to follow the risk management plan.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Find an alternative vendor and place an order
Why it's wrong here
This action is premature and potentially reactive. Before committing to a new vendor, the project manager must first assess the full impact of the current vendor's failure on project objectives, including schedule, cost, and quality. A hasty decision to switch vendors without proper analysis could introduce new risks, such as higher costs, longer lead times, or compatibility issues, without confirming it's the most effective response.
- ✓
Review the risk register for the identified risk and implement the planned response
Why this is correct
This is the most appropriate initial action. A critical vendor's inability to deliver is a significant project risk that should have been identified and documented in the risk register during planning. The risk register contains pre-defined risk responses, such as contingency plans or fallback options, which the project manager should now activate to mitigate the impact, ensuring a structured and proactive approach to managing the issue.
- ✗
Ask the team to work overtime to make up for the delay
Why it's wrong here
While increasing effort might seem like a quick fix, asking the team to work overtime is a reactive measure that does not address the fundamental issue of the critical vendor's failure to deliver. Overtime can lead to burnout, decreased quality, and increased costs, and it may not even be sufficient to compensate for a significant delay caused by a critical component or service, making it an unsustainable and often ineffective primary solution.
- ✗
Immediately inform the sponsor and steering committee
Why it's wrong here
While stakeholder communication is crucial, immediately informing the sponsor and steering committee without first understanding the full scope of the problem and potential solutions is premature. The project manager should first analyze the impact of the vendor issue, consult the risk register for planned responses, and formulate a clear update that includes potential impacts and proposed mitigation strategies before escalating, ensuring informed and actionable communication.
Go deeper
Related to this question
About these practice questions
Courseiva writes every PMP question from scratch — 800 in total, each with an explanation and a wrong-answer breakdown. None are copied from real exams or dumps. Learn why practice questions differ from exam dumps →
JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This PMP 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 PMP exam.