What recommendation should the risk manager make to the project manager?

The risk manager conducted an updated Monte Carlo simulation for the project at the end of a phase. The simulation reveals a key activity is now on the critical path.

What recommendation should the risk manager make to the project manager?
A . Add more float to the key activity
B . Add more contingency to the project
C . Review the plans for the key activity
D . Increase the budget for the key activity

View Answer

Answer: C

Explanation:

The risk manager should recommend that the project manager review the plans for the key activity,

as this will help identify potential issues and opportunities to improve the activity’s performance and reduce its impact on the critical path.

The risk manager should recommend the project manager to review the plans for the key activity, which is now on the critical path according to the Monte Carlo simulation. The critical path is the sequence of activities that determines the minimum possible duration of the project. Any delay on the critical path will affect the project completion date. Therefore, it is important to review the plans for the key activity and identify any potential risks, issues, or opportunities that may affect its performance. The risk manager and the project manager should also evaluate the feasibility and effectiveness of any risk response strategies for the key activity, such as fast-tracking, crashing, or resource optimization. The other options are not appropriate recommendations for the risk manager to make. Adding more float to the key activity is not possible, since the critical path has zero float by definition. Adding more contingency to the project may not address the specific risks or issues related to the key activity. Increasing the budget for the key activity may not improve its duration or quality, and may also increase the project cost baseline unnecessarily.

Reference: PMI Risk Management Professional (PMI-RMP) Examination Content Outline and Specifications, page 9 1. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) C Sixth Edition, pages 215-2162. Project Critical Path Analysis Using Monte Carlo Simulation3.