SOFTWARE ENGINEERING

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SOFTWARE PROJECT MANAGEMENT

RISK MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Question 98 of 100Question ID:612690You are leading a road construction project. Increasing crude oil prices have driven up the cost of asphalt for your project by 25%. This risk was identified and analyzed during project planning with funds set aside in case the risk is realized. The cost baseline is safe for now, but you feel additional price increases may be incurred before the project is completed.What should you do next?
A
APerform reserve analysis
B
BSubmit a change request to move the applicable management reserves into the cost baseline
C
CNotify the project sponsor of the situation
D
DTap into the management reserves at your discretion if needed
Explanation: 

Detailed explanation-1: -While global growth plays a major role in setting oil prices, supply dynamics influenced by political developments as well as technological innovations in crude extraction and alternative energy sources are also important oil market factors. FXSSI. “Top 10 Most Traded Commodities in the World-2022."

Detailed explanation-2: -When oil prices rise, costs for production and transportation rise, which decreases supply at a given price. If oil prices fall, production and transportation costs fall, so more can be produced at a given price.

Detailed explanation-3: -There is also a significant impact on the consumer price index (CPI) with increasing crude oil prices. Hence, inflation increases with a rise in crude oil prices. The RBI and the Indian government are trying hard to bring inflation below the 6% threshold, but if oil prices increase, controlling inflation won’t be easy.

There is 1 question to complete.
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