A global petroleum crisis has disrupted crude distribution where construction is underway. Materials are delayed and this phase is already behind schedule. What should the project manager do first to avoid further slippage?

The correct answer is to perform a risk assessment and define a risk response action plan. The global petroleum crisis is a new, significant risk event that has already impacted the project. The project manager's immediate priority should be to formally assess this risk, understand its full potential impact on the project schedule, cost, and scope, and then develop a proactive plan to mitigate or respond to it. This aligns with the Project Management Institute's (PMI) emphasis on proactive risk management. Proposing to pause the phase is premature and reactive; it might be a response, but only after a proper assessment. Continuing the project and using management reserves without a plan is also reactive and could deplete reserves unnecessarily without addressing the root cause or finding optimal solutions. Forming new partnerships might be part of a risk response, but it's not the first step; a full assessment is needed to determine if new partnerships are the best or only solution.