To produce the deliverables, the project will procure goods and services from outside the organization. The project manager has instructed the team to develop a comprehensive list of individual project risks related to those procurements.

What is the best course of action for the project team?

A. Consult the project charter
B. Review procurement documentation
C. Develop a procurement register
D. Check the probability and impact matrix

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HINT: What documentation would serve as an input to the Identify Risks process and provide relevant procurement information?

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Answer and Explanation:
The correct answer is B.

This question involves two Project Management Knowledge Areas: Project Risk Management and Project Procurement Management. Based on the scenario described, the project team is carrying out the Identify Risks process.

Procurement documentation is an output from the Plan Procurement Management process and an input to the Identify Risks process. Procurement documentation may include bid documents, the procurement statement of work, payment information, contractor work performance information, plans, drawings, correspondence.

Since procuring goods and services from outside the organization may increase or decrease overall project risk and may introduce additional individual project risks, reviewing procurement documentation is the best course of action for the project team.

Details for each option:

A. Incorrect. The project charter is a document issued by the sponsor that formally authorizes the existence of a project. This document may contain high-level information about the project including overall project risks and procurement needs. However, the project charter does not provide detailed information regarding procurements that could have helped the team to develop a comprehensive list of individual risks related to goods and services procured from outside the organization.

B. Correct. Procuring goods and services from outside the organization may increase or decrease overall project risk and may introduce additional individual project risks. Procurement documentation may contain information that will allow the project team to understand those risks better and develop the comprehensive list as requested by the project manager.

C. Incorrect. 'Procurement register' is a made-up term.

D. Incorrect. A probability and impact matrix is a grid for mapping the probability of occurrence of each risk and its impact on project objectives if that risk occurs. According to the scenario described, the project team is carrying out the Identify Risks process and is looking for inputs to develop a comprehensive list of individual project risks. Risks must be identified before their probability of occurrence and impact can be determined and documented in the probability and impact matrix.

Reference: A Guide to the Project Management Body of Knowledge (PMBOK^® Guide) – Sixth Edition, Project Management Institute Inc., 2017, Page(s) 413, 496