During the execution phase of a construction project, the project manager observes that the scheduled completion date might slip due to an unexpected delay in regulatory approval for a building extension. What should the project manager do first to manage this newly identified risk?
Update the risk register to include the new risk, its potential impacts, and propose risk response strategies.
Reschedule all work to a later date based on the assumption that the delay will occur.
Increase resources in other areas to compensate for the potential delay.
Wait to see if the regulatory approval will indeed cause a delay before taking any action.
The correct answer involves updating the risk register with the new risk. The risk register is a dynamic document that should be regularly updated with new risks as they are identified, as well as changes to existing risks. It is crucial to document the risk, assess its potential impact and likelihood, and plan an appropriate risk response strategy. Without this process, the project team would not be able to apply appropriate resources or strategies to mitigate the risk. Simply waiting to see if the risk occurs would not be proactive risk management, and increasing resources without assessing the risk impact may not be effective or could even exacerbate other project constraints. Rescheduling all work immediately is premature without first understanding the risk completely.
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