Program Management Professional (PgMP) — Question 385

A large infrastructure program has three component projects. Project 1 is being built in collaboration with a vendor company and has a high-level risk that could delay the timeline and increase the costs of two of the three projects. Project 1 could also delay the program delivery date. Fortunately, the program team reviewed the program management plan and realizes there are contingency reserves at the program and project levels.

What should the program manager do to utilize the contingency reserves?

Answer options

• A. Ask the two project managers of the impacted projects to use their contingency reserves because the high-risk delay will impact them
• B. Ask the project manager of project 1 to use its contingency reserve because of the high risk on this project
• C. Use the program contingency reserves because the high-level risk impacts the whole program and two of its components
• D. Review the contract with the procurement office to understand if the contingency reserves can be used to prevent delays

Correct answer: C

Explanation

The correct answer is C because the high-level risk associated with Project 1 impacts the entire program and warrants the use of program-level contingency reserves. Options A and B suggest limited action focused on individual projects instead of the broader program perspective. Option D, while relevant, does not directly address the immediate need to utilize the contingency reserves already identified for the program.