Crucial Exams

Project Management Professional Practice Question

A project manager is leading a domestic software-as-a-service (SaaS) project that purchases cloud infrastructure from a vendor with data centers located in several countries. The sponsor argues that, because all users and team members are located in the same country, tracking geopolitical developments is unnecessary and wastes effort. Which of the following statements BEST explains why the project manager should still monitor geopolitical trends as part of the external business environment assessment?

  • Monitoring geopolitical events is the responsibility of the portfolio management office, so the project manager gains no benefit from doing so.

  • Geopolitical tensions can trigger changes such as currency fluctuations, trade restrictions, or cloud-service export controls that may increase costs or disrupt the availability of critical resources, even for a purely domestic project.

  • Because the project's stakeholders have agreed to fixed-price contracts, external economic shifts caused by geopolitics cannot influence the project budget or schedule.

  • Geopolitical events only affect projects that physically cross national borders; domestic projects are insulated from their impact.

Project Management Professional
Business Environment
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