medium · Project Management Professional predictive

Coveport Logistics is updating its predictive tracking software. The team identifies a server failure risk (EMV: -$6,000) and a data breach threat (EMV: -$12,000), alongside a cloud credits opportunity (EMV: +$8,000). After setting the contingency reserve to $10,000, the project manager notices the server failure probability has increased.

What should the project manager do next?

  1. Inform the sponsor that a budget overrun is now inevitable.
  2. Immediately move $10,000 from management reserve into the cost baseline, while documenting the decision in the issue log.
  3. Direct the developers to work overtime to avoid the server failure.
  4. Update the risk register and re-perform the EMV calculation to assess reserve adequacy.

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