The answer is to execute the contingency plan and engage the backup supplier, then inform the sponsor of the cost increase. This is correct because the risk register already identified the vendor delay and prescribed a mitigation plan, so the contingency plan—activating the backup supplier—must be triggered immediately upon the risk occurring. The 20% higher price creates a cost variance that must be communicated to the sponsor as part of transparent cost management, since the project budget will need adjustment or approval for the increase. On the PMP exam, this scenario tests your ability to distinguish between executing a pre-planned response versus initiating a change request or treating the event as a new risk; a common trap is to assume you must submit a change request for the backup supplier, but the contingency plan is already approved. Remember the memory tip: “When the risk hits, flip the switch—execute the plan, then raise the bill.”
PMP Process — Managing Technical Aspects Practice Question
This PMP practice question tests your understanding of process — managing technical aspects. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. 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 the PM for a highway construction project. A key vendor informs you that they cannot deliver the steel beams on time due to a factory fire. This risk was identified in the risk register with a mitigation plan to have a backup supplier. However, the backup supplier's price is 20% higher. Which TWO actions should you take?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Inform the sponsor about the cost increase and request a budget adjustment
Option A is correct because the contingency plan (backup supplier) should be executed. Option B is correct because the cost variance needs to be communicated and addressed. Option C is wrong because changing the plan without review is not appropriate. Option D is wrong because switching to a different material requires change control. Option E is wrong because the risk occurred; it is not a new risk.
Key principle: NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
✓
Inform the sponsor about the cost increase and request a budget adjustment
Why this is correct
Stakeholders need to be informed of cost impacts.
Related concept
Static NAT maps one inside address to one outside address.
✗
Add the vendor's failure to the risk register as a new risk
Why it's wrong here
The risk occurred; it should be closed and lessons learned documented.
✗
Authorize the team to source alternative materials locally
Why it's wrong here
Sourcing alternative materials likely requires design changes and formal approval.
✓
Execute the contingency plan and engage the backup supplier
Why this is correct
The risk response plan should be implemented when the risk occurs.
Related concept
Static NAT maps one inside address to one outside address.
✗
Update the project management plan to use a different construction method
Why it's wrong here
Changing construction methods is a major change that requires impact analysis and approval.
Common exam traps
Common exam trap: NAT rules depend on direction and matching traffic
NAT is not only about the public address. The inside/outside interface roles and the ACL or rule that matches traffic are just as important.
Detailed technical explanation
How to think about this question
NAT questions usually test address translation, overload/PAT behaviour, static mappings and whether the right traffic is being translated. Read the interface direction and address terms carefully.
KKey Concepts to Remember
Static NAT maps one inside address to one outside address.
PAT allows many inside hosts to share one public address using ports.
Inside local and inside global describe the private and translated addresses.
NAT ACLs identify traffic for translation, not always security filtering.
TExam Day Tips
→Identify inside and outside interfaces first.
→Check whether the scenario needs static NAT, dynamic NAT or PAT.
→Do not confuse NAT matching ACLs with normal packet-filtering intent.
Key takeaway
NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.
Real-world example
How this comes up in practice
A small business has 20 workstations on the 192.168.1.0/24 network and one public IP from its ISP. The router uses PAT (NAT overload) so all 20 devices share one public address using different source ports. NAT questions test whether you understand the four address terms and which direction each translation applies.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this PMP question in full detail.
Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related PMP NAT questions on configuration and troubleshooting.
Process — Managing Technical Aspects — This question tests Process — Managing Technical Aspects — Static NAT maps one inside address to one outside address..
What is the correct answer to this question?
The correct answer is: Inform the sponsor about the cost increase and request a budget adjustment — Option A is correct because the contingency plan (backup supplier) should be executed. Option B is correct because the cost variance needs to be communicated and addressed. Option C is wrong because changing the plan without review is not appropriate. Option D is wrong because switching to a different material requires change control. Option E is wrong because the risk occurred; it is not a new risk.
What should I do if I get this PMP question wrong?
Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related PMP NAT questions on configuration and troubleshooting.
What is the key concept behind this question?
Static NAT maps one inside address to one outside address.
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Question Discussion
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