Avoidance

Correct Answer: Begin the process of acquiring the necessary permits prior to the start of the project

The best strategy to avoid potential delays due to permits in a project is to 'Begin the process of acquiring the necessary permits prior to the start of the project'. This strategy allows time for all relevant permissions to be gathered, without delaying project launch or execution. On the contrary, commencing the project and simultaneously applying for the permits might lead to potential pauses or slow-downs in project operations if the permit acquisition takes longer than expected. Ignoring the identified risk of permit delays is not suitable as it can result in significant project setbacks, and simply allocating extra time for permit-related delays in the project plan, even though it can help manage time better, does not necessarily prevent the risk of permit delay, it only prepares for its consequences.

Correct Answer: Rent backup machinery as a precaution

Renting backup machinery as a precaution is the best approach in this scenario because it allows for continuity of the project in case of a machinery breakdown. Ignoring the risk or waiting until the machinery breaks down before starting maintenance is inefficient and potentially costly, as it can lead to significant project delays. Buying more machinery is also not the most cost-effective solution, as it involves a large upfront cost and may not be necessary if the machinery does not break down.

Correct Answer: Choose a supplier with stronger financial stability

As a project manager, the best way to mitigate the risk of a supplier potentially going bankrupt is to 'Choose a supplier with stronger financial stability'. This choice reduces the chance of fumbling project timelines or quality due to supplier issues. 'Proceed with the current supplier' is incorrect because doing so would only sustain the risk. 'Try to negotiate the price with the current supplier' is a wrong option because it does not fundamentally address the risk of bankruptcy. The last option, 'Stop the project until the supplier is financially stable', is incorrect because it might result in serious project delays and potentially extra costs. The key to successful project management is to anticipate and manage risks proactively, which is best represented by the correct answer.