An insurance company is managing a hybrid project to modernize its claims processing system. The core system architecture follows a predictive lifecycle, while customer-facing features are developed using Scrum. Six months into the project, the organization announces a merger with another insurance company that uses a completely different technology stack. Senior leadership asks the project manager to assess whether the current project should continue, be modified, or be cancelled in light of the merger. What is the most appropriate first step?

Question

Accepted Answer

The correct answer is B. When organizational changes such as mergers occur, the project manager must reassess strategic alignment and business value in the new context (ECO Business Environment Task 1.1). This assessment provides data-driven insights about whether continuing, modifying, or cancelling the project best serves the organization's evolved strategy. The hybrid nature of the project may offer advantages for partial continuation or modification. Option A is wrong because immediately suspending the project without analysis could halt value delivery that may still be strategically important to the merged entity—some deliverables might support both technology stacks or provide needed capabilities during integration. Strategic assessment should precede suspension decisions to avoid unnecessarily disrupting beneficial work.

PMP Practice Question: Business Environment — Hybrid, Medium

More Business Environment Questions