- A
Proceed with the alternative vendor and inform the sponsor of the cost overrun after the fact
Why wrong: Proceeding without change control violates the project management plan.
- B
Initiate a change request to increase the cost baseline, documenting the risk response and vendor selection
Since the response exceeds the baseline, formal change control is required.
- C
Accept the risk and hope the vendor recovers, avoiding the cost increase
Why wrong: Acceptance is a valid response but not when a proactive response was planned and feasible.
- D
Escalate to the sponsor for a decision on whether to cancel the project
Why wrong: Escalation to cancel is premature; a change request is the appropriate next step.
Question 720 of 892
PMP Process — Managing Technical Aspects Practice Question
This PMP practice question tests your understanding of process — managing technical aspects. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
You are managing a hybrid project with both predictive and agile components. A key risk from the risk register materializes: a critical vendor may go bankrupt, threatening delivery of a hardware component needed for the predictive phase. The risk response plan includes 'mitigate by identifying alternative vendors.' However, the only alternative vendor quotes a price that would exceed the project cost baseline by 10%. What should you do NEXT?
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
✓
Initiate a change request to increase the cost baseline, documenting the risk response and vendor selection
When a risk response (mitigate by identifying alternative vendors) is executed and the chosen response causes a cost overrun, the correct next step is to initiate a change request to formally update the cost baseline. This aligns with the PMBOK Guide's change control process, ensuring the project's budget reflects the approved risk response and maintains traceability. Option B is correct because it follows the formal change management process required for any deviation from the cost baseline.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Proceed with the alternative vendor and inform the sponsor of the cost overrun after the fact
Why it's wrong here
Proceeding without change control violates the project management plan.
- ✓
Initiate a change request to increase the cost baseline, documenting the risk response and vendor selection
Why this is correct
Since the response exceeds the baseline, formal change control is required.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Accept the risk and hope the vendor recovers, avoiding the cost increase
Why it's wrong here
Acceptance is a valid response but not when a proactive response was planned and feasible.
- ✗
Escalate to the sponsor for a decision on whether to cancel the project
Why it's wrong here
Escalation to cancel is premature; a change request is the appropriate next step.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates may think the risk response plan authorizes immediate action without formal change control, but the PMP exam emphasizes that any change to the cost baseline requires a documented change request, even when executing a pre-planned risk response.
Detailed technical explanation
How to think about this question
In hybrid projects, the cost baseline is a formal component of the project management plan, and any change to it must go through the integrated change control process (PMBOK Guide, Section 4.6). The risk response plan's 'mitigate' strategy is executed by selecting the alternative vendor, but the resulting cost increase triggers a change request to update the cost baseline, not an automatic acceptance of the overrun. This ensures that the project's performance measurement baseline remains accurate and that stakeholders are formally informed of the financial impact.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A practitioner preparing for the PMP exam encounters this exact type of scenario on the job. The correct answer here is not the most general option — it is the best answer for the specific constraint described. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Real exam questions reward reading the full scenario before eliminating options, because the constraint defines which answer fits.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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Process — Managing Technical Aspects — study guide chapter
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FAQ
Questions learners often ask
What does this PMP question test?
Process — Managing Technical Aspects — This question tests Process — Managing Technical Aspects — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Initiate a change request to increase the cost baseline, documenting the risk response and vendor selection — When a risk response (mitigate by identifying alternative vendors) is executed and the chosen response causes a cost overrun, the correct next step is to initiate a change request to formally update the cost baseline. This aligns with the PMBOK Guide's change control process, ensuring the project's budget reflects the approved risk response and maintains traceability. Option B is correct because it follows the formal change management process required for any deviation from the cost baseline.
What should I do if I get this PMP question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Last reviewed: Jul 4, 2026
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