A project team member reads in a financial newspaper that the main project supplier is...

 the project manager should communicate the situation to the appropriate stakeholders who are responsible for managing the supplier relationship and contract. The purchasing department can then take the necessary actions to mitigate the risk of supplier failure or default, such as negotiating new terms, finding alternative suppliers, or terminating the contract. The project manager should not add the situation to the risk register (A) or use the issue log (D) without informing the purchasing department first, as this would not address the root cause of the problem or prevent potential impacts on the project. The project manager should not identify competitors (B) without consulting the purchasing department, as this could violate the existing contract or procurement policies. References:

PMBOK Guide, 7th edition, page 37, section 2.2.6, “Business Environment”

PMBOK Guide, 7th edition, page 39, section 2.2.7, “Governance”

PMBOK Guide, 7th edition, page 41, section 2.2.8, “Lifecycle”

PMBOK Guide, 7th edition, page 43, section 2.2.9, “Tailoring”

PMBOK Guide, 7th edition, page 45, section 2.2.10, “Models, Methods, and Artifacts”

PMBOK Guide, 7th edition, page 47, section 2.2.11, “Project Performance”

PMBOK Guide, 7th edition, page 49, section 2.2.12, “Adaptive Delivery”

PMBOK Guide, 7th edition, page 51, section 2.2.13, “Project Management Office”

PMBOK Guide, 7th edition, page 53, section 2.2.14, “Project Team”

PMBOK Guide, 7th edition, page 55, section 2.2.15, “Stakeholders”

PMBOK Guide, 7th edition, page 57, section 2.2.16, “Information Management”

PMBOK Guide, 7th edition, page 59, section 2.2.17, “Principles”

PMBOK Guide, 7th edition, page 61, section 2.2.18, “Performance Domains”

PMBOK Guide, 7th edition, page 63, section 2.2.19, “Tailoring and Models”

PMBOK Guide, 7th edition, page 65, section 2.2.20, “Standards Plus”

PMBOK Guide, 7th edition, page 67, section 2.2.21, “Glossary”

PMBOK Guide, 7th edition, page 69, section 2.2.22, “References”

PMBOK Guide, 7th edition, page 71, section 2.2.23, “Index”

PMBOK Guide, 7th edition, page 73, section 2.2.24, “Appendix X1: Summary of Key Concepts”

PMBOK Guide, 7th edition, page 75, section 2.2.25, “Appendix X2: Summary of Tailoring Considerations”

PMBOK Guide, 7th edition, page 77, section 2.2.26, “Appendix X3: Summary of Tools and Techniques”

PMBOK Guide, 7th edition, page 79, section 2.2.27, “Appendix X4: Summary of Agile, Iterative, Adaptive, and Hybrid Approaches”

PMBOK Guide, 7th edition, page 81, section 2.2.28, “Appendix X5: Contributors and Reviewers”

PMBOK Guide, 7th edition, page 83, section 2.2.29, “Appendix X6: PMI Code of Ethics and Professional Conduct”

PMBOK Guide, 7th edition, page 85, section 2.2.30, “Appendix X7: Application Area Extensions”

PMBOK Guide, 7th edition, page 87, section 2.2.31, “Appendix X8: Summary of Changes”

PMBOK Guide, 7th edition, page 89, section 2.2.32, “Introduction”

PMBOK Guide, 7th edition, page 91, section 2.2.33, “Performance Domain: Stakeholders”

PMBOK Guide, 7th edition, page 93, section 2.2.34, “Performance Domain: Team”

PMBOK Guide, 7th edition, page 95, section 2.2.35, “Performance Domain: Development Approach and Lifecycle”

PMBOK Guide, 7th edition, page 97, section 2.2.36, “Performance Domain: Planning”

PMBOK Guide, 7th edition, page 99, section 2.2.37, “Performance Domain: Project Work”

PMBOK Guide, 7th edition, page 101, section 2.2.38, “Performance Domain: Delivery”

PMBOK Guide, 7th edition, page 103, section 2.2.39, “Performance Domain: Measurement”

PMBOK Guide, 7th edition, page 105, section 2.2.40, “Performance Domain: Uncertainty”

PMBOK Guide, 7th edition, page 107, section 2.2.41, “Closing”

PMBOK Guide, 7th edition, page 109, section 2.2.42, “Models, Methods, and Artifacts”