CAPMMedium

CAPM Practice: Demonstrate an understanding of the various project life cycles and processes

Question 12 of 95 in Demonstrate an understanding of the various project life cycles and processes

Pick an answer below — you'll get the explanation instantly, no signup.

Halima Choi is managing a software development project at Resonance Creative. During planning, the team identified that a third-party API they plan to use might become unavailable due to the vendor's financial instability. How should this be classified?

Show answer & explanation

Correct answer: As a risk, because there is uncertainty about the API's future availability

Explanation

This is a risk because it represents an uncertain future event that could impact the project. Risks are identified during planning and have not yet occurred. The vendor's instability creates uncertainty about API availability.

**Why not B:** A constraint is a known limiting factor that restricts project options, such as a fixed budget or deadline. The vendor's potential unavailability is uncertain and has not yet occurred, making it a risk rather than a definite constraint on the project.

**Why not C:** An issue is a current problem that is actively affecting the project and requires immediate resolution. The vendor's financial instability has not yet caused the API to become unavailable, so it remains an uncertain future event (a risk), not a current issue.

**Why not D:** An assumption is something the team believes to be true without verification, such as assuming the API will remain available. The team has specifically identified uncertainty about the API's availability, which makes it a risk to be managed, not an assumption being relied upon.

Key Concept

This question covers Demonstrate an understanding of the various project life cycles and processes under Demonstrate an understanding of the various project life cycles and processes (Project Management Fundamentals and Core Concepts).

All 1,500+ CAPM questions are free