PMP People — Leading Projects Practice Question
A risk that was identified and in the risk register has occurred. The risk response plan involves outsourcing a component, but the vendor is now unable to deliver on time. What should the project manager do FIRST?
⚠ Common exam trap
A common mix-up: candidates confuse 'implement the fallback plan' with 'escalate to sponsor,' but the PMBOK Guide emphasizes that the project manager should first use the pre-defined risk responses before escalating, as escalation is reserved for risks outside the project manager's authority.
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
✓
Implement the fallback plan or contingency reserves as defined in the risk register
The risk has materialized and the risk response plan (outsourcing) has failed. The project manager must immediately execute the pre-defined fallback plan or use contingency reserves as documented in the risk register. This aligns with the PMBOK Guide's guidance on implementing risk responses when the primary response is no longer viable.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Implement the fallback plan or contingency reserves as defined in the risk register
Why this is correct
When a previously identified risk materializes, the project manager's primary responsibility is to execute the pre-defined risk response strategy. This involves implementing the specific fallback plan, which outlines alternative actions, or utilizing contingency reserves, which are funds or time allocated for known risks. These responses are meticulously documented in the risk register, ensuring a proactive and controlled approach to mitigate the risk's impact on project objectives.
- ✗
Wait to see if the vendor can resolve the issue
Why it's wrong here
Passively waiting for a vendor to resolve an issue, especially when a risk has already occurred, is a reactive and often detrimental approach in project management. This inaction allows the risk event to potentially escalate, causing further delays, increased costs, or quality degradation beyond the initial impact. Effective risk management demands immediate execution of planned responses rather than hoping for an external resolution without a defined strategy.
- ✗
Escalate the issue to the project sponsor for guidance
Why it's wrong here
Immediately escalating an identified risk with a pre-planned response to the project sponsor is an inappropriate first step for the project manager. The project sponsor's role is typically for strategic guidance, approval of significant changes, or addressing risks beyond the project manager's authority or those that were previously unidentified. The PM is expected to utilize the established risk management plan and execute documented responses before seeking higher-level intervention.
- ✗
Reassign the work to an internal team
Why it's wrong here
Reassigning work to an internal team as an immediate, unplanned response to a materialized risk is an ad-hoc solution that deviates from structured risk management. Such an action may introduce new unforeseen risks, such as resource overload, skill gaps within the internal team, or increased project costs due to unplanned resource allocation. The most effective approach is to follow the specific, pre-defined risk response strategy outlined in the risk register.
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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.