medium · Project Management Professional predictive

Whitlock Software is delivering a predictive banking upgrade. A critical server in the testing environment fails due to a manufacturing defect. This specific failure was not identified in the risk register. The project manager realizes that the contingency reserve is nearly full, while the management reserve is almost empty.

What is the correct course of action?

  1. Charge the repair to the nearest work package budget to avoid depleting the management reserve further.
  2. Assess the impact of the failure and seek approval to use the management reserve, even if it requires a budget increase request to the sponsor.
  3. Halt the project and wait for the management reserve to be replenished by the next quarterly funding cycle.
  4. Use the contingency reserve since it is currently over-funded and the failure is technically a 'risk' that has materialized, without revisiting the agreed prioritization criteria.

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