Program Management Professional (PgMP) — Question 288

During delivery of an overseas construction program, the planned budget is overspent due to unforeseen inflation and the currency exchange rate. What should the program manager do to mitigate this issue?

Answer options

• A. Update the program budget
• B. Use the management reserve
• C. Use the contingency reserve
• D. Update the cost baseline

Correct answer: C

Explanation

The correct answer is C because the contingency reserve is specifically set aside to address unforeseen costs like inflation and currency fluctuations. Updating the program budget or cost baseline (options A and D) without addressing the underlying issue won't resolve the overspending. Using the management reserve (option B) is not appropriate since it is typically allocated for risks that were anticipated but not for unplanned expenses.