Exam PMP topic 1 question 1051 discussion

In this situation, the project manager should focus on communicating the potential benefits and cost savings associated with accepting the identified risk as an opportunity. By emphasizing that accepting the risk could lead to finishing the project earlier and at a lower cost, the project manager can align the decision with the sponsor's interests. Providing a clear business case and demonstrating the positive impact on the project's overall success may help in gaining the sponsor's acceptance, especially when dealing with a risk-averse sponsor.

B. Conduct a Monte Carlo analysis to determine if the team will complete the project early

In project management, Monte Carlo analysis can be used to calculate the probability that a project will be completed within schedule. For example, if the time required for each task is uncertain, you can assume different periods of time for each task (e.g. 5 to 10 days) and predict the completion time of the entire project through simulation. The results of the analysis provide statistical predictions such as “There is a 95% probability that the project will be completed within 30 days.”

B. Conduct a Monte Carlo analysis to determine if the team will complete the project early.

La meilleure démarche serait de présenter des arguments basés sur une analyse détaillée et les bénéfices potentiels, tout en fournissant des garanties appropriées. Analyse de Monte Carlo : Cette technique de simulation permet d'évaluer les différentes probabilités et scénarios liés au risque. En effectuant une analyse de Monte Carlo, le chef de projet peut fournir des données précises sur les probabilités de terminer le projet plus tôt, ainsi que sur les impacts potentiels des différents scénarios. Cette approche fondée sur des données chiffrées est plus susceptible de convaincre un promoteur prudent, car elle réduit l'incertitude et démontre une évaluation rigoureuse du risque.

The problem with option C as an answer is that it does not clearly give a rational/reason why the risk should be accepted. It is not enough to just say that it is a non-risk even and should therefore be accepted, especially when dealing with a risk averse sponsor. That's why Option D is the correct answer.

This analysis can provide a probabilistic assessment of the project’s completion time, which can help the project manager and the sponsor make an informed decision about the risk.

In project management, "nonevent" risks are those with a positive impact or opportunity. Since the project team has identified this risk as an opportunity to finish the project earlier than planned, it's important to communicate this to the sponsor. By explaining that this risk represents a favorable opportunity for the project and doesn't pose a threat, the project manager can help the risk-averse sponsor understand the potential benefits of accepting it.

In this situation, it's important for the project manager to communicate effectively with the sponsor. The project manager should provide a clear explanation of the identified risk, emphasizing that it is an opportunity rather than a threat. It's crucial to address the sponsor's concerns about risk aversion and demonstrate how accepting this particular risk can lead to benefits such as finishing the project earlier and potentially reducing costs. Clear communication and highlighting the positive aspects of the risk can help build understanding and acceptance.

Option A is the most appropriate action to address the risk while accommodating the sponsor's risk aversion by having a plan in place to manage the potential consequences.

Opportunity to finish earlier - Non Even ris - "C" is the right answer.

This risk positively impact schedule but may or may not positively impact cost. So, contingency reserve is important to accept the risk. So, A seem more suitable answer. Option D assumes that risk will cost less which is not evident from the question.