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Fallback Plan

5 minutes 5 Questions

A Fallback Plan is a risk management technique that outlines alternative actions to be taken if the primary risk response plan does not provide the desired results or mitigates a risk. Fallback Plans are contingencies designed to address uncertainties and ensure project continuity in the face of unexpected events. This includes keeping additional resources, time, and budget for potential risks. In essence, a Fallback Plan is a backup plan that complements the primary risk response plan, providing an added layer of security and helping minimize the negative impact of risks on the project.

Guide to Fallback Planning as per PMBOK Guide Seventh Edition

Fallback Plan, as defined by the PMBOK Guide Seventh Edition, is a management plan with actions and strategies to be enacted if the original plan does not achieve its targeted result.

Importance: Fallback planning is integral to project risk analysis as it serves as insurance for projects. By preparing for potential issues beforehand, project managers can promptly address and mitigate challenges, preventing costly delays or project failure. It enhances the control and confidence of the project team and stakeholders.

Working: Fallback plans are developed by identifying potential risks, their impacts, and determining appropriate actions to recover from those impacts.

Answering Questions: When answering questions on the Fallback Plan in an exam, be sure to demonstrate an understanding of risk identification, analysis, and the development of contingency measures. Relate it to real-life scenarios, stressing the importance of agility in project management.

Exam Tips: When addressing questions on Fallback Plans, remember:

  • Always link fallback plans to risk management strategies.
  • Clearly understand the difference between primary and fallback plans.
  • In a scenario-based question, identify the risks first then propose the fallback plan.

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PMP - Project Risk Analysis Example Questions

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Question 1

A team member responsible for a key component of the project suffers a personal emergency, leaving the team short-staffed. The project manager's fallback plan includes a pool of standby resources. What is the appropriate action?

Correct Answer: Engage a standby resource from the fallback plan.

The best action to consider when a key member of a project team is unavailable due to a personal emergency is to 'Engage a standby resource from the fallback plan.' This is because in project management, it's best to make use of the resources already available and planned for in such scenarios, ensuring that the project continues as scheduled without overloading the rest of the team or hiring new members unnecessarily. The other answers would either increase the workload on the remaining team ('Ask the remaining team members to work overtime.'), bring in resources without respecting the planned contingencies ('Hire a new team member without considering the standby resources.'), or imply unnecessary delays and potential cost overruns ('Extend the project timeline to accommodate the absence.').

Question 2

A project team discovers that their primary vendor is experiencing production issues that could lead to delays. They have identified a secondary vendor as part of their fallback plan. What should the project manager do?

Correct Answer: Engage the secondary vendor.

The project manager, upon understanding that their primary vendor is facing production issues, should 'Engage the secondary vendor'. This option is a part of their fallback plan and will help to avert potential delays arising from the issue. As for the other options, waiting for the primary vendor to resolve the production issues can lead to time lags and unseen issues while the project is live. On the other hand, suggesting to cancel the project because of vendor-related issue is not a solution-oriented approach and does not exhibit effective problem-solving skills. Lastly, engaging both the primary and secondary vendors to increase production might not always be feasible or cost-effective, and more importantly, might not be needed if the secondary vendor can satisfy the production requirement solely.

Question 3

You are managing a project to develop a new product line. During the production phase, a key supplier informs you they cannot deliver crucial components due to unforeseen circumstances. You had identified this risk and had a contingency plan to source from an alternative supplier. However, the alternative supplier is also experiencing delays, making the contingency plan ineffective. Your risk management plan includes a fallback plan to use a more expensive supplier from overseas who can deliver on time. What should you do next?

Correct Answer: Proceed with the fallback plan by sourcing the components from the overseas supplier as planned.

Since the contingency plan (alternative supplier) is ineffective due to delays, the next step is to implement the fallback plan as outlined in the risk management plan. The risk management process dictates that when a contingency plan fails, the project manager should execute the predefined fallback plan to mitigate the risk and keep the project on track. In this case, proceeding with the fallback plan by sourcing components from the overseas supplier who can deliver on time is the appropriate action. Updating the risk register and observing the situation does not address the immediate problem. Attempting to negotiate with the alternative supplier is unlikely to be effective since they are already experiencing delays, and the contingency plan has failed. Collaborating with another local supplier not previously considered is not part of the risk management plan and could introduce new risks or delays.

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