Risk Response and Stakeholder Communication
Your project is in the execution phase and a key vendor has notified you that they will be unable to deliver a critical component on time due to a labor strike. Which TWO actions should the project manager take? (Choose two)
Quick Answer
The correct answer is to immediately notify the project sponsor and key stakeholders about the delay and its impact. This is because risk response implementation during the execution phase requires proactive communication and activation of pre-planned contingency measures; the risk register should already contain a plan for identified threats like a vendor labor strike, and executing that plan—starting with stakeholder notification—is the mandated first step per the PMBOK Guide. On the PMP exam, this scenario tests your understanding that risk response is not just about choosing a strategy but about executing it and communicating transparently, a common trap being to delay notification while seeking alternatives. A helpful memory tip is "Notify first, then act"—stakeholders must be informed immediately before any mitigation steps are taken, ensuring alignment with the project’s communication management plan.
⚠ Common exam trap
Test-takers frequently confuse direct intervention (Option A) or passive waiting (Option C) with proper risk management, instead of recognizing that the contingency plan in the risk register is the correct, pre-authorized response.
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 contingency plan that was documented in the risk register
Option B is correct because the risk register documents agreed risk responses, and a labor strike at a vendor is exactly the kind of identified risk whose contingency plan (e.g., alternate supplier, buffer stock, or schedule reserve) should be triggered during execution. Option E is correct because the project manager must promptly communicate the delay and its impact on scope, schedule, cost, and quality to the sponsor and key stakeholders, as stakeholder engagement and transparent reporting are essential in the executing phase. Option A is not appropriate because negotiating with a labor union is outside the project manager's authority and role. Option C is wrong because passively waiting allows the schedule and cost impact to worsen instead of executing a planned response. Option D is wrong because unilaterally demanding a no-cost alternative supplier is not a valid risk response and ignores contract terms, change control, and cost impact.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Travel to the vendor's site to negotiate directly with the labor union
Why it's wrong here
A project manager has no authority to negotiate with another organisation's labour union; that is the vendor's internal industrial relations matter. Direct negotiation tempts because face-to-face engagement with stakeholders is a core PMP technique, but it applies to the vendor's management, not its workforce.
- ✓
Implement the contingency plan that was documented in the risk register
Why this is correct
The risk register already documents a contingency plan for this identified vendor risk, so executing it is the planned response. Triggering it promptly addresses the labour-strike delay while the team assesses residual impact, rather than improvising untested alternatives.
- ✗
Wait for the strike to end before taking any action
Why it's wrong here
Passive waiting forfeits the schedule buffer and violates the PMP mandate to actively manage risk during execution. It tempts as a low-cost holding pattern when the strike looks short, yet the correct actions are assessing impact and implementing the risk response plan rather than ceding control.
- ✗
Ask the vendor to find an alternative supplier without additional cost
Why it's wrong here
Outsourcing to another supplier shifts contractual risk onto the vendor and cannot compel delivery during a strike; the PMP response is to assess schedule impact and activate the procurement contingency plan. It tempts because vendor substitution is a valid risk response when a supplier permanently fails, not when a temporary labour dispute delays one component.
- ✓
Immediately notify the project sponsor and key stakeholders about the delay and its impact
Why this is correct
Transparency obligations require the project manager to escalate the vendor delay and its schedule, cost and scope implications to the sponsor and key stakeholders. Early notification lets them make informed decisions about mitigation, re-baselining or invoking contractual remedies.
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Same concept, more angles
1 more way this is tested on PMP
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. Your project is in the execution phase when a new regulation is passed that affects the project's deliverables. The team is already working at full capacity. What should the project manager do FIRST?
hard- A.Instruct the team to incorporate the regulation into current work immediately.
- B.Stop all work until the regulation is fully understood.
- C.Update the risk register and continue as planned.
- ✓ D.Analyze the impact of the regulation on scope, schedule, and cost.
Why D: D is correct because the PMBOK Guide requires the project manager to first analyze the impact of a change on the triple constraint (scope, schedule, cost) before taking any action. Since the team is at full capacity, immediate incorporation (A) or stopping work (B) would be premature without understanding the regulation's effect. Updating the risk register (C) without analysis skips the necessary impact assessment step.
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.